Governance and Financing of Innovative Very Small Business (VSB): Evidence from a Canadian Biotechnological Firm

Abstract

ARTICLES Agency costs of overvalued equity and earnings management in companies listed on WSE (Michał Kałdoński, Tomasz Jewartowski) Friends or foes? Activist hedge funds and other institutional investors (Andrew Carrothers) Board ethos and institutional work: developing a corporate governance identity through developing the uk code (Donald Nordberg)Governance and fi nancing of innovative very small business (VSB): evidence from a Canadian biotechnological fi rm (Alidou Ouedraogo) Corporate governance, risk and crises in small companies: shedding light from inside the boardroom black box (Leslie Spiers) Gender diversity impact on corporate social responsibility (CSR) and Greenhouse Gas emissions in the UK (Renata Konadu)Lessons university-based business schools should learn vicariously-rather than through experience-from university athletics (Edward W. Miles) Commercialization of the education of economists versus integrity of the university (Jan Szambelańczyk) Abstract: Using a very small business (VSB) as a starting point the aim of the paper is to show the extent to which substantial and rapid technological, institutional and competitive changes can aff ect the emergence of new innovative ideas. Moreover, the paper attempts to identify a few general areas worth contemplating regarding the mechanisms of governance and the fi nancing of young, innovative companies that stem from this research. In sectors that are subject to rapid competitive and technological changes, the structure of governance, the fi nancing and the implementation are all key elements to their success. Results based on a case study show three distinct governance structures with related fi nancing strategies. Hence, the personally craft ed governance is refl ecting by a personal or proximity (family, friends) type of fi nancing, professional governance is accompanying by government fi nancing (federal and provincial) and governance growth relies on institutional fi nancing.