We consider the financing of a research projectunder uncertainty about the time of completion and the probability of eventualsuccess. We distinguish between two financing modes, namely relationshipfinancing, where the allocation decision of the entrepreneur is observable, andarm's-length...

We analyze the implications of entrepreneurial spawning for a variety of firm characteristics such as size, focus, profitability, and innovativeness. We examine the dynamics of spawning over time. Our model accounts for much of the empirical evidence relating to the relation between spawning and...