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  "documentTitle": "Throne vs the kingdom",
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      "text": "31 Connecting risk to the private benefits of control, Shaobo (2007) argues that \"the private benefits of control actually are ... the risk premium of control.\"",
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      "text": "chance to play a central role in driving and controlling the growth of the company they founded (e.g., Carland, Hoy et al. 1984; Begley and Boyd 1987). The key for this study isn't the particular ordering of the control and value-creation motivations, but that they can conflict and might lead to very different outcomes. Furthermore, for founders who are clearly motivated by either independence or financial gains, the decisions they should make are much clearer than for founders with mixed motivations.",
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      "text": "Risk is another important factor in these founder decisions. On the one hand, resource scarcity increases the firm's risk (Keats and Hitt 1988) and should exacerbate the liability of newness (Stinchcombe 1965). However, firm demise is not the only risk faced by founders; many founders may also worry about the risk of losing control of the idea they conceived and the company they birthed, leading them to avoid attracting resources.31 Future research could examine the risk profiles of each of these paths and how they should affect resource decisions. Risk also affects the value of capital investments via its impact on option values (McDonald and Siegel 1986; Abel, Dixit et al. 1996), which can be a substantial portion of the value of an entrepreneurial venture (Dixit and Pindyck 1995). Furthermore, although attracting outside resources may increase company survival, bringing investors into the startup can increase the pressure to \"swing for the fences\" - to ratchet up the growth, usually increasing the risk of complete failure. Replacing a founder-CEO - especially one unhappy with losing control - may also heighten risks for the company. For these reasons, a founder's refusal to attract outside resources and to remain CEO may instead reduce risks for the company. Research that examines these competing types of risk can help shed further light on this tradeoff.",
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