Capital Ideas offers a collection of four articles:
In “Bet on the Horse,” Per Strömberg and Berk A. Sensoy and Steven N. Kaplan study how particular types of entrepreneurial firms evolve. In so doing, the findings shed light on the relative importance of a company’s product and market versus the company’s founders and management team.
“How Smart is Smart Money?” focuses attention on the role of venture capitalists in entrepreneurial companies. By looking at how top-tier and second-tier VCs invest in different geographical markets, Morten Sørensen is able to estimate the relative importance of choosing (or sorting) and adding value (or influencing).
In “Generalists vs. Specialists,” Damon J. Phillips and coauthor Jesper B. Sørensen examine the relationship between the size of an entrepreneur’s prior employer and the success of the entrepreneur’s new venture.
In “Why Mergers Fail: Beyond Culture Clashes,” Wouter Dessein, Luis Garicano, and Robert Gertner address a different aspect of value creation by studying the tradeoffs involved in achieving synergies in corporate mergers.
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