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Full-Text Articles in Business
Heterogeneous Adaptability: Learning, Cash Resources, And The Fine-Grained Adjustment Of Misaligned Governance, Xavier Martin, Ilya Cuypers
Heterogeneous Adaptability: Learning, Cash Resources, And The Fine-Grained Adjustment Of Misaligned Governance, Xavier Martin, Ilya Cuypers
Research Collection Lee Kong Chian School Of Business
Research Summary: When can a firm make fine-grained adjustments to misaligned subsidiary governance? We examine whether and under what conditions a firm will adapt the equity stake it owns in a subsidiary, enabling improved alignment of the stake with the uncertainty in the local environment. We predict that the rate of adaptation of misaligned equity stakes depends on the experiential and vicarious learning from which the firm can draw, and that these learning effects are contingent on possessing fungible slack resources, specifically cash. Using a sample of 726 Japanese-foreign subsidiaries established in 38 host countries over a 21-year period, we …
Friends, Family, Or Fools: Entrepreneur Experience And Its Implications For Equity Distribution And Resource Mobilization, Reddi Kotha, Gerard George
Friends, Family, Or Fools: Entrepreneur Experience And Its Implications For Equity Distribution And Resource Mobilization, Reddi Kotha, Gerard George
Research Collection Lee Kong Chian School Of Business
Who helps entrepreneurs raise the resources they need and how much equity does an entrepreneur distribute in return? We use a sample of 611 entrepreneurs in the U.S. to examine why some entrepreneurs are more likely than others to distribute ownership selectively to helpers. We find that entrepreneurs with specific industry experience and start-up experience are able to provide ownership more selectively and raise more resources from their helpers. We refine the categorization of social ties further to make a distinction between professional and familial ties to show that the ownership distribution and types of resource contributions vary by the …