Entrepreneurship: Business Venturing. Exploring The Effects Of Corporate Governance Mechanisms

This paper attempts to analyze the association between corporate governance - measured by the exercise of control by larger shareholders and the board of directors- and corporate entrepreneurship for businesses quoted on the Madrid Stock-Exchange. Under the hypothesis of management opportunist behavior and being consistent with agency theory, this paper contrasts the existence of a greater corporate entrepreneurship when an effective control over the management does not exist, and the executives are significant shareholders. Thus, the authors examine two sources of influence on managerial support for corporate entrepreneurship: the firms ownership structure and its governance system. Their objective was to understand how firm characteristics -in terms firm corporate governance attributes- influences the decisions about entering in new businesses or markets.