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CEO entrepreneurial orientation, entrenchment, and firm value creation

CEO entrepreneurial orientation, entrenchment, and firm value creation
CEO entrepreneurial orientation, entrenchment, and firm value creation
We investigate how CEO entrepreneurial orientation affects firm value creation and how this relationship is moderated by three sources of CEO entrenchment. We conducted a longitudinal analysis of S&P 500 firms between 1999 and 2007, and, in line with our predictions, we found that CEO entrepreneurial orientation enhances firm value creation and that this positive effect is reduced when CEOs are entrenched (1) due to corporate governance provisions that protect them from the majority will of shareholders, (2) due to substantial ownership that provides them too much decision–making power, and (3) because their family has substantial holdings in the corporation.
1042-2587
475-504
Keil, Thomas
807b2e1e-bb32-46ff-b3d0-0390af4d7c43
Maula, Markku
abb3665f-1493-4b20-8bf0-63f1fd991888
Syrigos, Evangelos
b1c15e33-35b2-4c6a-ba96-02938a9b5174
Keil, Thomas
807b2e1e-bb32-46ff-b3d0-0390af4d7c43
Maula, Markku
abb3665f-1493-4b20-8bf0-63f1fd991888
Syrigos, Evangelos
b1c15e33-35b2-4c6a-ba96-02938a9b5174

Keil, Thomas, Maula, Markku and Syrigos, Evangelos (2017) CEO entrepreneurial orientation, entrenchment, and firm value creation. Entrepreneurship Theory and Practice, 41 (4), 475-504. (doi:10.1111/etp.12213).

Record type: Article

Abstract

We investigate how CEO entrepreneurial orientation affects firm value creation and how this relationship is moderated by three sources of CEO entrenchment. We conducted a longitudinal analysis of S&P 500 firms between 1999 and 2007, and, in line with our predictions, we found that CEO entrepreneurial orientation enhances firm value creation and that this positive effect is reduced when CEOs are entrenched (1) due to corporate governance provisions that protect them from the majority will of shareholders, (2) due to substantial ownership that provides them too much decision–making power, and (3) because their family has substantial holdings in the corporation.

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e-pub ahead of print date: 1 July 2017

Identifiers

Local EPrints ID: 495575
URI: http://eprints.soton.ac.uk/id/eprint/495575
ISSN: 1042-2587
PURE UUID: 82d8947e-a687-4729-a3b2-a500300bc161

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Date deposited: 18 Nov 2024 17:43
Last modified: 18 Nov 2024 17:43

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Contributors

Author: Thomas Keil
Author: Markku Maula
Author: Evangelos Syrigos

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