Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Relationship Between Entrepreneurial Intensity and Shareholder Value Creation

Contents:

Author Info

  • Pierre Erasmus

    (University of Stellenbosch, South Africa)

  • Retha Scheepers

    (University of Stellenbosch, South Africa)

Registered author(s):

    Abstract

    Innovation and entrepreneurship have long been regarded as sources of value and wealth creation. Previous research has shown that there is a positive relationship between enterprises’ levels of entrepreneurship and their financial performance. Little research, however, has hitherto focused on measuring the relationship between entrepreneurship and shareholder value creation. In this study the relationship between the entrepreneurial intensity and the shareholder value created by an enterprise is investigated. An adapted corporate entrepreneurship (CE) measurement instrument is applied in order to gauge entrepreneurial intensity, while shareholder value creation is measured by the market adjusted total share return (TSR) and the value based financial performance measure Economic Value Added (EVA). The study is conducted for a sample of enterprises listed in the industrial sector of the Johannesburg Securities Exchange (JSE) for the period 2003–2005. The contribution of the study is the focus on the relationship between entrepreneurial intensity and shareholder value creation, rather than purely on the accounting-based financial performance of an enterprise.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/6_229-256.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.

    Volume (Year): 6 (2008)
    Issue (Month): 3 ()
    Pages: 229-256

    as in new window
    Handle: RePEc:mgt:youmgt:v:6:y:2008:i:3:p:229-256

    Contact details of provider:
    Postal: Cankarjeva 5, SI-6104 Koper, PO BOX 345
    Phone: 05 610 20 00
    Fax: 05 610 20 15
    Email:
    Web page: http://www.mgt.fm-kp.si
    More information through EDIRC

    Order Information:
    Email:
    Web: http://www.mgt.fm-kp.si

    Related research

    Keywords: entrepreneurial intensity; value based financial performance measures; economic value added;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Biddle, Gary C. & Bowen, Robert M. & Wallace, James S., 1997. "Does EVA(R) beat earnings? Evidence on associations with stock returns and firm values," Journal of Accounting and Economics, Elsevier, vol. 24(3), pages 301-336, December.
    2. Antoncic, Bostjan & Hisrich, Robert D., 2001. "Intrapreneurship: Construct refinement and cross-cultural validation," Journal of Business Venturing, Elsevier, vol. 16(5), pages 495-527, September.
    3. Morris, Michael H. & Sexton, Donald L., 1996. "The concept of entrepreneurial intensity: Implications for company performance," Journal of Business Research, Elsevier, vol. 36(1), pages 5-13, May.
    4. Morgan, Robert E. & Strong, Carolyn A., 2003. "Business performance and dimensions of strategic orientation," Journal of Business Research, Elsevier, vol. 56(3), pages 163-176, March.
    5. Zahra, Shaker A., 1991. "Predictors and financial outcomes of corporate entrepreneurship: An exploratory study," Journal of Business Venturing, Elsevier, vol. 6(4), pages 259-285, July.
    6. Knight, Gary A., 1997. "Cross-cultural reliability and validity of a scale to measure firm entrepreneurial orientation," Journal of Business Venturing, Elsevier, vol. 12(3), pages 213-225, May.
    7. Hornsby, Jeffrey S. & Kuratko, Donald F. & Zahra, Shaker A., 2002. "Middle managers' perception of the internal environment for corporate entrepreneurship: assessing a measurement scale," Journal of Business Venturing, Elsevier, vol. 17(3), pages 253-273, May.
    8. Zahra, Shaker A. & Garvis, Dennis M., 2000. "International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 469-492.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Justyna Franc-Dabrowska, 2009. "Does Dividend Policy Follow the Capital Structure Theory?," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(4), pages 367-382.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:mgt:youmgt:v:6:y:2008:i:3:p:229-256. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alen Jezovnik).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.