Value Based Management in Young Innovative Growth Companies
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Author/sBernasco Lisboa, Carl Torsten
Discipline/sAdministración y Dirección de Empresas
Young innovative growth companies (in the following abbreviated by YIGC) are stunning investors and promise exceptional development: New media businesses like Apple, Google, Facebook, Netflix or Amazon have been showing enormous stock price performances which by far exceed the S&P 500. After an initiation period of negative cashflows, business innovations create trends and finally promise huge abnormal returns. Previous academic research suggests a divide between value based and growth directed entrepreneurial orientation. Authors taking the perspective of neoclassical economic theory explain that value based orientation is inseparable from the sustainable generation of shareholder value and implies the comparatively slow long-term growth of a business. A balanced strategy weighing risk and growth potential is essential. Value based companies are traditionally associated to established business sectors here technologic progresses are clearly predictable. Their markets are stab...