Oct

10

The paper Do Some Business Models Perform Better than Others? looks at matrix of type of rights being sold (creator, distributor, landlord, broker) by type of asset (physical, financial, intangible, human) for about 10,000 Compustat firms:

They find differences in various performance metrics, including FF alpha (a suspect measure of stock performance against size and book returns). The alpha for entrepreneur companies was significantly negative, and significantly positive for physical brokers.

Here is definition of entrepreneur:

An Entrepreneur creates and sells financial assets often creating and selling firms. Examples: serial entrepreneurs, "incubator" firms, other active investors in very early stage firms like Kleiner,Perkins, Caufield & Byers. We do not include in this business model entrepreneurs who never sell the firms they create."

and physical broker:

(14) A Physical broker matches buyers and sellers of physical assets. Examples: eBay, Century 21


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search