Entrepreneurship, Compensation, and the Corporation
Henry G. Manne
George Mason University School of Law
May 27, 2011
Quarterly Journal of Austrian Economics, Vol. 14, No. 1, pp. 3-24, 2011
This paper revisits the concept of entrepreneurship, which is frequently neglected in mainstream economics, and discusses the importance of defining and isolating this concept in the context of large, publicly held companies. Compensating for entrepreneurial services in such companies, ex ante or ex post, is problematic – almost by definition – despite the availability of devices such as stock and stock options. It is argued that insider trading can serve as a unique compensation device and encourage a culture of innovation.
Number of Pages in PDF File: 22
Keywords: Entrepreneurship, Compensation, Corporation, Innovation, Insider Trading
JEL Classification: D82, D83, J33, K22, L26, M12, M52Accepted Paper Series
Date posted: May 31, 2011
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