Are entrepreneurs special? Evidence from board appointments |
| |
| Institution: | 1. University of Tennessee, Knoxville, Haslam College of Business, 916 Volunteer Boulevard, Knoxville, TN 37996, United States of America;2. Miami University, Farmer School of Business, 2074 Farmer School of Business, Oxford, OH 45056, United States of America;3. The University of Queensland, Room 513, Joyce Ackroyd Building, St. Lucia Campus, Australia;1. Technical University of Munich, TUM School of Management, Arcisstr. 21, 80333 München, Germany;2. Université Libre de Bruxelles, Solvay Brussels School Economics and Management, Avenue FD Roosevelt 50, 1050 Brussels, Belgium;3. University of Oklahoma, Price College of Business, 307 W. Brooks St., Norman, OK 73069, United States;4. Mendoza College of Business, University of Notre Dame, Notre Dame, IN 46556, United States;1. Department of Economics and Business, Universitat Pompeu Fabra, Barcelona GSE, Barcelona School of Management, Ramon Trias Fargas, 25-27, E-08005 Barcelona, Spain;2. Department of Accountancy, Tilburg University, Warandelaan 2, 5037 AB Tilburg, the Netherlands |
| |
| Abstract: | As shown in previous studies, founder-led firms perform better than those run by professional managers. Does this reflect the special relation of founders to their firms or do entrepreneurs possess attributes and experiences that are valuable even at firms not founded by them? Drawing on the resource-based view of the firm, we study this question by evaluating the effect of entrepreneurs who serve as outside directors of other firms. We find that the stock market reacts positively to appointments of outside entrepreneur directors and that firms with these directors have higher long-term value as measured by Tobin's q. Entrepreneur directors are also associated with increased R&D investment and higher sales growth, and their effect on firm value is larger among firms in R&D-intensive and competitive industries. We conclude that outside entrepreneur directors enhance firm value through their propensity to take risk and their ability to anticipate demand patterns and create new markets. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
