Hubris, rapid capacity expansions and the competition in de novo ventures

• المؤلفون الرئيسيون: FAN, Terence Ping Ching, Hayward, Mathew
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2010
• الموضوعات: Overconfidence; hubris; capacity expansion; de novo ventures; Corporate Finance; Portfolio and Security Analysis
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research_smu/58; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1057&context=lkcsb_research_smu
• المؤسسة: Singapore Management University

This study develops and tests the hubris theory of entrepreneurship as a means to explain the variation in failure rates amongst de novo ventures, complementing escalation and other behavioral explanations. It uses rapid increases in production capacity as a proxy for overconfidence, and firm failur...