Search results

This paper aims to explore the allocation of the exit value of a start-up company in market equilibrium between an angel investor and an entrepreneur in the very early-stage financing market.

The theoretical model is established based on the two-sided random search theory and the model’s ability to match the empirical data is evaluated via simulation.

The model indicates that the allocation of the final investment outcome is not proportional to the initial investments by the angel investor and the entrepreneur. The simulation results show that the continued investment by the entrepreneur and the private benefit acquired by the angel investor have a more profoundly negative influence on the angel investor’s share of the exit value of the start-up company. Moreover, the market search structure represented by the matching probability of an angel investor to an entrepreneur has a more significant impact on the angel investor’s share than the other model parameters.

The importance of market search friction in the very early-stage financing market is emphasized. The concepts of continued investments and private benefits are introduced and quantified for the first time under the framework of angel investment. The impacts of such model parameters as the matching probability of an angel investor to an entrepreneur, the success rate of a start-up company, the bargaining power of an angel investor and the discount rate on the allocation of the exit value of the start-up company are investigated as well.

The purpose of this paper is to investigate entrepreneurs’ investment decisions under uncertainty in continued investments where the authors test the role of emotions to continue or discontinue the investment.

A conjoint analysis is carried out on 101 entrepreneurs’ 3,232 investment decisions. The entrepreneurs were provided with a scenario of an investment where the dependent variable was the entrepreneur's propensity to allocate further resources to the described investment. They assessed their willingness to allocate further resources to the investment on a seven-point Likert-type scale. The independent variables in the experiment were the experienced emotions of the entrepreneur each of which was described by the two levels of high and low.

It was found that self-confidence, challenge, and hope increase the propensity to continue investments as do increased level of uncertainty. Embarrassment and strain do not increase this propensity, however, high uncertainty decreases the propensity to continue investments. In contrast to the escalation of commitment theory, embarrassment does not make entrepreneurs more prone to invest under uncertainty. Frustration does not yield significant results, which runs contrary to the theory and the hypothesis finds no support.

The paper focussed on a limited number of emotions, and also on one specific moderating factor that impacts the effect of these emotions on the investment decision.

To understand the role of their emotions in investment decisions under different levels of uncertainty may help entrepreneurs to improve the quality of their decision making.

This study is an experiment where practitioner entrepreneurs participate which increases the ecological validity of the study. Emotions can explain, partly, why entrepreneurs persist with some underperforming projects, but not others. Uncertainty is a powerful moderating variable in the decision-making process. The results enhance existing knowledge about the emotive side of entrepreneurs’ propensity to make investment decisions under uncertainty. The results also supplement and refine existing theories on self-justification.

This paper aims to explore the increasing role of financialisation on investment decisions in the power generation industry in Great Britain (GB). Such decisions affect society, and the relative role of financialisation in these macro-levels decisions has not been explored from a historical perspective.

The paper draws on historical material and interview data. Specifically, we use an approach inspired by institutional sociology drawing on elements of Scott’s (2014) pillars of institutions. Applying concepts stemming from regulative and normative pressures, we explore changes in investments over the analysis period to determine forces which institutionalised practices – such as accounting – into investment in power generation.

Investments in electricity generation have different levels of public and private participation. However, the common logics that underpin such investment practices provide an important understanding of political-economics and institutional change in the UK. Thus, the heightened use of accounting in investment has been, to some extent, a contributory factor to the power supply problems now faced by the British public.

This paper contributes to prior literature on the effects of financialisation on society, adding power generation/energy supply to the many societal level issues already explored. It also provides brief but unique insights into the changing nature of the role of accounting in an industry sector over an extended timeframe.

The national and global digital transformation makes investments in information and communications technology (ICT) by financial institutions a necessity, not only for gaining a competitive advantage but also for expanding their knowledge and learning about their customers. This study assesses the business value of ICT investments by financial institutions using a mixed-method approach.

This study adopted a mixed-method approach. First, financial data were gathered from Omani banks' annual financial reports and through a longitudinal quantitative analysis in order to assess the value of ICT in financial institutions' profitability performances. Second, a Delphi qualitative approach was utilized in order to further assess how top managers view the impact of ICT investments in different aspects of business. We used an extended balanced scorecard (finance, customer, internal process and learning and growth) and a sector perspective to address how future ICT investments can offer value that goes beyond traditional metrics of profitability.

The results of the longitudinal study demonstrated significant evidence of the impact of ICT investment on finance performance indicators; ICT value is significantly positive. Furthermore, the results indicated that there is an acceptable consensus among business and ICT managers that ICT is linked to performance indicators beyond financial; ICT value is linked also to customer indicators, internal process indicators and learning and growth indicators in addition to sector indicators.

ICT is vital for a diversified and knowledge-based economy, especially for developing countries, because modern banking and financial institutions are relatively new in economies such as those that had previously relied on cash and informal financing institutions. Therefore, continued ICT investments face challenges and may not succeed. Most of the existing literature on ICT value has focused on tangible financial performance indicators. The financial evaluation of intangible performance indicators of ICT investments still remains a problematic area of high relevance to decision-makers. The present study provides an integrated assessment that enables financial institutions to develop their strategies and assessments in terms of ICT investments and to go beyond typical, tangible financial profitability indicators. Furthermore, it integrates assessment indicators that are beyond organizations themselves and reaches sectors and countries. This type of investigation is limited in the literature yet important for the financial sector as it is highly integrated by nature and critical to the development of a nation's economy.

The paper discusses a range of aspects of the spread of sportswashing within top-flight football, identifies the motivations of its proponents, what is on offer to football clubs, their followers and local communities and the ways in which it coheres with the nature of the modern game.

A range of disparate literature, both academic and non-academic, is synthesised to provide a broad-ranging introduction to the spread of sportswashing within top-flight football.

Sportswashing is likely to increase within top-flight football in future years as a result of its resonance with aspects of the game's evolving nature. Resistance to its continuing spread presently appears improbable.

As relatively recent development within football, the sportswashing topic has produced a limited literature to which this paper contributes.

Economic growth is defined as growth in the capacity to meet individual and collective consumption demands. Decline in economic growth for a longer period (i.e. recession) occurs as a part of the “The Limits of Growth” concept. During such an economic crisis, three policy concepts can be implemented: “austerity”; “business as usual”; and “fiscal stimulus”. The purpose of this paper is to examine the economic response to the 2008 recession, in the area of sustainable transport system development, in Europe.

The study assesses and identifies the need for investments in transport infrastructure, in particular rail, to remove barriers to developing a sustainable multimodal transport system. Towards this, by analysing secondary data collected from relevant online sources, the paper explores the prospects for sustainable rail freight transport development in Europe, during the recession period. For this, eight EU countries were selected, based on the length of railway lines in use: France, Germany, Italy, Poland, Romania, Spain, Sweden and the UK.

Investment in five transport infrastructures were examined – road, rail, IWT, maritime ports and airports – and the research finds that overall, the “austerity” policy was implemented for investment in rail infrastructure, whereas a modest “stimulus” policy can be observed for investment in road infrastructure. The average investment in IWT infrastructure had a “stimulus” policy, whereas the average investment in Maritime port and Airport infrastructure suggests a “business as usual” policy. Of the various approaches taken in the recent recession period, European rail transport appears to have fared least well.

To some extent, the research is limited by lack of some data (e.g. data unavailability on the UK airport infrastructure investment from year 2006).

The findings of the research will encourage policy makers in national government to invest in sustainable transport infrastructure.

The study suggests that there is a lack of uniform policy response to the recession, in terms of investment in transport infrastructure, and that there is a significant difference between the policy goals set by the EU – modal shift from road to rail and/ IWT to develop a sustainable transport system – and their practice. The author argues for an integrative, common and action-oriented approach to sustainable rail freight system development, by European countries, to develop effective, Europe-wide rail freight corridors, under schemes such as Horizon 2020 and Shift2Rail.

The purpose of this paper is to investigate commitment escalation tendencies and magnitude in groups of entrepreneurship-minded decision makers.

The paper uses a software-based management simulation to expose 447 graduate business students in the USA and India to research stimuli under conditions that resemble important aspects of entrepreneurs’ business environment, such as a focus on overall firm performance. Unlike most previous escalation research that studied individuals, the primary unit of analysis is a three-person group.

The paper demonstrates a positive relationship between the groups’ entrepreneurial intentions and escalation magnitude. The paper also finds a direct relationship between sunk costs and subsequent investment amounts, suggesting an additional route through which sunk costs may impact escalation behavior – anchoring and insufficient adjustment.

The authors hope that the findings will stimulate further research on commitment escalation modalities and mechanisms among entrepreneurship-minded decision makers and provide impetus for efforts to develop effective debiasing strategies.

The study addresses a long-standing gap in entrepreneurship research, by demonstrating a significant positive relationship between entrepreneurial intentions and escalation behaviors. Also noteworthy, the results are generated using a different research method (simulation) than the experimental approach used in most extant escalation research. As such, the exploration provides important triangulating evidence that is currently lacking from the rich escalation literature.

Examines Laughlin Currie's experiences in helping to implement the New Deal, a new monetary system of Roosevelt's administration implemented during the 1930s.

International investment law has become a powerful tool of global economic governance. With its global network of international investment treaties and effective arbitration mechanism, it has made an extraordinary leap from a relatively niche and underrated area of international law to one of the most prominent legal regimes. This paper aims to illustrate how the evolutionary trajectories of globalization and international investment law have been intertwined.

This paper follows the historical unfolding of international investment law against the background of the globalization phenomenon, tracing the history of globalization processes since the expansion of European interests and export of capital and the onset of the international investment legal framework.

The evolution of globalization and international investment law has always been intertwined and co-dependent, experiencing similar phases of acceleration, transformation, adjustment and progress. This paper finds that the current era of globalization is characterized by an increasing complexity and diversity of transnational interests and global connections; this is also true for international investment law, which is undergoing changes aimed at including wider contexts and interests in international investment relations.

The analysis contributes to a more holistic understanding of the interdependence of these two phenomena, helping to explain how international investment law has become such a powerful, globally recognized and applied legal regime.

The intellectual capital of a nation (or a region of nations) requires the articulation of a system of variables that helps to uncover and manage the invisible wealth of a country. Most importantly, an emphasis on human capital allows for a better understanding of the hidden values, individuals, enterprises, institutions, and communities that are both current and potential future sources of intellectual wealth. This paper endeavours to address the five research questions. The main outcomes of this paper are the development of a national intellectual capital measurement methodology and index. The NICI is also used within a structural equation model to test several hypotheses related to national intellectual capital development.