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1 – 3 of 3Kittiphod Charoontham and Thunyarat Amornpetchkul
This study aims to investigate a startup accelerator’s decisions toward exerting effort in an information acquisition process and selecting an information disclosure strategy. In…
Abstract
Purpose
This study aims to investigate a startup accelerator’s decisions toward exerting effort in an information acquisition process and selecting an information disclosure strategy. In particular, the authors are interested in examining which factors may cause the accelerator to report more or less accurate information, which will subsequently affect the investment decision and the outcome of the ventures. This study examines the impact of the equity share taken by the accelerator on the effort level being exerted in the information acquisition process, as well as the accelerator’s decision on the information disclosure regime.
Design/methodology/approach
The authors use mathematical models built upon well-established theoretical and practical concepts to analyze the research problems and derive the findings.
Findings
The authors show that when the accelerator takes a sufficiently large equity share from the entrepreneur in exchange for admitting the entrepreneur’s venture into the acceleration program, the accelerator is motivated to exert a significant level of effort to observe an accurate signal for the quality of the venture, and then disclose the information about the venture’s quality consistently with the observed signal (informative disclosure regime). On the other hand, if the accelerator takes a small equity share, it is optimal for her to exert no effort in the information acquisition process and simply adopt the basic disclosure regime, where the accelerator reports the quality of the venture based solely on the ex ante expected payoff of the venture, regardless of the observed signal.
Practical implications
The results indicate that an equity sharing scheme, which awards a sufficient amount of equity to the accelerator, can be an effective tool to help obtain accurate information about the quality of a startup venture and make a well-informed investment decision.
Originality/value
This research illustrates that the ownership stake of the accelerator can potentially indicate the accuracy of the information about the venture provided by the accelerator to outside investors. That is, when the stake held by the accelerator is large, the investors can conjecture that the information about the venture reported by the accelerator may be highly accurate and reliable. In contrast, if the accelerator holds a small stake, then it is likely that the information provided by the accelerator may not add any value to the publicly available information. These insights can guide investors (e.g. angle investors, venture capitalists, etc.) in making well-informed startup investment decisions.
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George (Yiorgos) Allayannis, Paul Tudor Jones and Aaron Fernstrom
The case describes a hypothetical hedge fund manager who is examining whether to invest in bitcoin. The case discusses potential risks and rewards of investing in bitcoin, the…
Abstract
The case describes a hypothetical hedge fund manager who is examining whether to invest in bitcoin. The case discusses potential risks and rewards of investing in bitcoin, the role of bitcoin and digital currencies more broadly, and financial innovation in the space, such as ICOs. It can be taught as part of a second-year MBA elective course in investments, financial institutions/capital markets, or fintech.
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Loi Anh Nguyen, Rebecca Evan, Sanghamitra Chaudhuri, Marcia Hagen and Denise Williams
Organizations increasingly use inclusion initiatives to reflect a meaningful involvement of their entire workforce as part of their larger diversity, equity and inclusion (DEI…
Abstract
Purpose
Organizations increasingly use inclusion initiatives to reflect a meaningful involvement of their entire workforce as part of their larger diversity, equity and inclusion (DEI) strategies. However, the conceptualization of inclusion and its impact on larger DEI efforts and the organization remains unclear, coupled with the organizations’ struggles to find ways to embrace and advance inclusion. Hence, the purpose of this study is to synthesize ways of inclusion conceptualizations and review empirical evidence related to inclusion.
Design/methodology/approach
The authors conducted a literature review using the method of scoping review coupled with topical cluster mapping techniques.
Findings
The authors captured three ways of inclusion conceptualizations and provided an overview of topic clusters related to inclusion and its measurement tools. The authors also proposed a path model of inclusion based on emerging empirical evidence related to inclusion in the workplace.
Originality/value
To the best of the authors’ knowledge, this is one of the pioneering efforts to provide a much-needed review of inclusion in the workplace, which provides guidance for further research and practice to fulfill the goal of inclusion for all in the current workplace.
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