Entrepreneurship, Compensation, and the Corporation
Quarterly Journal of Austrian Economics, Vol. 14, No. 1, pp. 3-24, 2011
22 Pages Posted: 31 May 2011
Date Written: May 27, 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.
Keywords: Entrepreneurship, Compensation, Corporation, Innovation, Insider Trading
JEL Classification: D82, D83, J33, K22, L26, M12, M52
Suggested Citation: Suggested Citation