We analyze a sample of 2,914 hiring contracts and show how job security plays a role in pay negotiation. We find a significant impact of job security on CEO pay using both firm and industry-level measures across US firms. In general, CEO candidates and the board members would trade pay for job...

Frank Fetter's contributions to entrepreneurship and the theory of the firm are usually overlooked, even though his original treatments are relevant to both the history of economic thought and contemporary entrepreneurship research. I highlight three ways Fetter's work adds to our understanding...

Trust is a key factor affecting investors' decisions to invest in other agents. These “trustee-agents” use an investor's funds to engage in unique risky opportunities. However, little is known about trustee reciprocity in such environments. Our experimental environment is the first to...

We study information aggregation in organizational decision-making for the financing of entrepreneurial ventures. We introduce a formal model of voting where agents face costly tacit information to improve their decision quality. Equilibrium outcomes suggest a theoretical tension for group...

We study the effects of three cognitive biases by the entrepreneur on obtaining funding. We find planning fallacy to increase funding amounts, whereas optimism and overconfidence by the entrepreneur have no effects on funding amounts from others. Further, planning fallacy positively impacts the...

Industrial policies of innovation concentrate on funding or encouraging promising innovations entailing growth or that have possibilities of internationalization. However, concrete innovation process happens in and between individuals. Effectuation is a logic that is emergent and iterative in...

We find a strong positive relationship between entrepreneurs' home-county social capital and their crowdfunding performance on Kickstarter. We exploit a quasi-experiment based on a Kickstarter rule change that strengthens entrepreneurs' obligation to provide backers with the promised rewards and...

Evaluating the market for potential entrepreneurs, we test whether interacting with confident agents encourages entry into competitive environments. Under an experimental setting, we find that young managers confident in their entrepreneurial potential, despite no prior experience, increase the...

Building on the organizational capabilities view, this study explores the impact of network and managerial capabilities on the performance of entrepreneurial firms in the architecture and real estate sector. We apply an extended organizational capabilities model by integrating Porter's value...

We develop a tractable model to study jointly the role of non-diversifiable risk and financial frictions for business cycles. Non-diversifiable risk induces strong precautionary motives, which reduce the exposure of entrepreneurs to aggregate disturbances ex-ante, and make it easier to increase...