Commercialization Strategy and IPO Underpricing

Morricone, Serena; Munari, Federico; Oriani, Raffaele; Rassenfosse, Gaétan de

doi:10.2139/ssrn.2966036

Cited by 5 publications

(6 citation statements)

References 81 publications

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“…As the other firms' characteristics, the average firms' age is 13 years and a total of 68 percent of companies have VCs investing in the company before the IPO date. In line with previous studies investigating the IPOs of technology ventures (Morricone et al, 2017), the majority of our sample firms went public having a negative profitability and 20 percent of companies are subsidiaries. Correlation coefficients reported in Table 2 indicate that the innovative productivity of IPO firms is positively related to the financial resources collected during the IPO process (Resource Munificence) and the firm's level of investments in innovation (R&D).…”

Section: Analysis and Resultssupporting

confidence: 81%

Litigation risks and firms innovation dynamics after the IPO

2020

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An Initial Public Offering (IPO) is a critical event in a firm's life cycle which can reshape its innovation strategy. Research suggests that after going public firms experience an increase in patent productivity. Our paper explores perceived litigation risks as a determinant of this outcome by examining US semiconductor firms. Results show that perceived patent litigation risks are positively associated with patent productivity after the IPO. Interestingly, we also find that the amount of capital raised during the IPO is positively associated with patent productivity after the IPO, successfully replicating previous findings on this relationship.These results are robust to model specifications where we attempt to account for the dynamics of self-selection of firms into IPO by considering matched control firms with similar pre-IPO characteristics, but that never went public.

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Section: Analysis and Resultssupporting

confidence: 81%

Litigation risks and firms innovation dynamics after the IPO

2020

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“…A possible explanation is that patents widely vary in terms of their quality, and our variables that are simply counting the number of patents do not account for patent quality (Haeussler et al, ). Moreover, the mere possession of patents may not signal value to investors, but whether and how firms are able to exploit and commercialize the patent (Morricone, Munari, Oriani, & de Rassenfosse, ).…”

Section: Resultsmentioning

confidence: 99%

Equity crowdfunding in Germany and the United Kingdom: Follow‐up funding and firm failure

Hornuf

Schmitt

Stenzhorn

2018

Corporate Governance

118

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Manuscript type Empirical Research question/issue Today, startups frequently obtain financing via the Internet through many small contributions of nonsophisticated investors. Yet, little is known whether these startups can ultimately build enduring businesses. This study investigates the determinants of follow‐up funding and firm failure after an equity crowdfunding campaign has taken place. Research findings/insights We use hand‐collected data from 13 different equity crowdfunding portals and 413 firms that ran at least one successful equity crowdfunding campaign in Germany or the United Kingdom between 2011 and 2016. Our findings show that German firms that received equity crowdfunding stood a higher chance of obtaining follow‐up funding through business angels or venture capitalists but also had a higher likelihood of failure. The number of senior managers and the number of initial venture capital investors both had a positive impact on obtaining postcampaign financing, whereas the average age of the senior management team had a negative impact. The number of initial venture capital investors and the valuation of the firm were significant predictors increasing the hazard of firm failure, whereas the number of senior managers and the amount raised during previous equity crowdfunding campaigns had a negative impact. Theoretical/academic implications This study provides some first empirical evidence regarding the firm and campaign characteristics that determine follow‐up funding and firm failure after an equity crowdfunding campaign has taken place. Given the absence of research on this topic so far, this study inevitably remains original and exploratory to some extent. The empirical findings suggest various avenues of research for human capital theory, organizational ecology, and the comparative corporate governance literature. Practitioner/policy implications Identifying influencing factors of follow‐up funding and firm survival is important to make this new and potentially welfare enhancing form of entrepreneurial finance more predictable by decreasing the risk of individual investments. Furthermore, this study offers insights to policy makers, which are currently expected to implement appropriate regulations for this new market segment. In addition, it provides important insights for portal managers as well as firms raising capital via equity crowdfunding, which may learn about their chances to build an enduring business. https://youtu.be/w_4lIfnOaQY

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“…Specific IPO firm characteristics are found to be incorporated by the market when pricing IPO shares: the quality of the entrepreneurial team (Chemmanur et al, 2020), the presence of domestic or foreign venture capitalists in the shareholding (Chahine et al, 2019), the affiliation with prestigious underwriters (Khoury et al, 2013), the strategies of technology commercialization (Morricone et al, 2017), the visibility on social networks (Mumi et al, 2019). Refer to Manigart and Wright (2013) for a review of research on VCs.…”

Section: Journal Of Financial and Quantitativementioning

confidence: 99%

“…The results contrast sharply with the emerging literature on managerial self-dealing at shareholder expense. Morricone et al (2017) Research Policy This paper studies the interplay between two defining features of technology-based firms: licensing as a commercialization strategy and the reliance on equity financing. Within the context of an IPO, the authors argue that the technology commercialization strategy of a firm going public affects information asymmetries and, therefore, IPO underpricing.…”

Section: Journal Of Internationalmentioning

confidence: 99%

IPOs and Entrepreneurial Firms

Giudici

Vismara

2021

FNT in Entrepreneurship

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The listing on a stock exchange is a paramount milestone in the life cycle of an enterprise. By taking their company public on a stock market through an Initial Public Offering (IPO), entrepreneurs may target several benefits (e.g., raising money, facilitating acquisitions, offering valuable stock ownership plans to employees) but their firms will bear new costs and requirements. In this work we review the academic literature on IPOs of entrepreneurial firms, focusing on five main topics: (i) the going public decision, (ii) pricing and valuation, (iii) the role of intermediaries and underwriters in the listing process, (iv) the performance of IPO-firms in the short and long run, and (v) market cycles in the IPO industry.

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Commercialization Strategy and IPO Underpricing

Cited by 5 publications

References 81 publications

Litigation risks and firms innovation dynamics after the IPO

Litigation risks and firms innovation dynamics after the IPO

Equity crowdfunding in Germany and the United Kingdom: Follow‐up funding and firm failure

IPOs and Entrepreneurial Firms

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