exam 3 Flashcards
institutional owners
financial institutions that control large-block shareholder positions
who has been at center of german corporate governance?
banks
internal governance mechanisms
ownership concentration, board of directors, executive compensation
relationship between manager and shareholder
creates an agency relationship, where one party delegates decision making to second party for compensation.
when is market for corporate governance useful?
useful for when corporate governance system in place fails
what determines ownership concentration?
level of diversification
what influences the Japanese corporate governance structure?
family, consensus, and obligation
entrepreneurship
process by which people, teams, or organizations identify and pursue entrepreneurial opportunities without being immediately constrained by current resources.
reason for different levels of entrepreneurship in countries
culture
autonomous strategic behavior
bottom up process where entrepreneurs pursue new ideas by innovating and bringing innovations to the market
what is vital to the commercialization of a new idea?
cross-functional integration
level of entrepreneurial activity and national development
positive correlation
three types of innovative activity
invention, innovation, imitation
induced strategic behavior
top down process of innovation where firm’s current strategy produce innovations closely related to that strategy
types of innovation
novel and incremental
