Firms must allocate some minimum amount of value to stakeholders in order to retain access to the resources they provide. Stakeholder theory suggests managers optimize firm-level performance by allocating more than this minimum amount. However, how much is too much? This article addresses the...

A growing literature suggests that some entrepreneurs lie to investors in order to improve the likelihood of acquiring resources needed for firm survival and growth. We propose a framework outlining the conditions that may enable an investor who has been told a lie by an entrepreneur to respond...

Bank loans are a common source of financing for small firms. While scholars have examined specific conditions that affect small firm loan approval and interest rates, practical questions remain about how these loans are structured to address characteristically acute challenges from asymmetric...

This study uses a real options framework to predict small firm bootstrapping behavior with regard to trade credit discounts. Findings from a sample of 606 small firms suggest their managers place high value on the ability to adjust their decisions over time in response to firm-specific changes...

Entrepreneurs bring together the various stakeholders necessary to create new products and services; however, stakeholders face a high level of uncertainty when determining whether to invest their resources in the venture. This paper draws from signaling theory and stakeholder theory to explain...

In 1999, MCI WorldComm and Sprint agreed to merge. Valued at $129 billion, this expected transaction was the largest in history. However, it fell victim to regulators in Europe concerned with the potential monopoly power of the merged firm. This M&A action was merely the latest in a growing...