Commercialization Strategy and IPO Underpricing

Serena Morricone (), Federico Munari (), Raffaele Oriani () and Gaétan de Rassenfosse ()
Additional contact information
Serena Morricone: HEC Lausanne
Federico Munari: University of Bologna
Raffaele Oriani: LUISS Guido Carli

Working Papers from Chair of Science, Technology, and Innovation Policy

Abstract: 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, we argue that the technology commercialization strategy of a firm going public affects information asymmetries and, therefore, IPO underpricing. In particular, we theorize that underpricing will be higher when a firm’s technology commercialization strategy is more based on licenses. We also posit that the size of the patent portfolio will mitigate this effect. Our results from a sample of 130 IPOs in the U.S. Semiconductor industry confirm these predictions.

Keywords: Initial public offering (IPO); Underpricing; License; Patent; Semiconductor (search for similar items in EconPapers)
JEL-codes: G32 L24 L63 M13 O32 O34 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2017-05
New Economics Papers: this item is included in nep-cfn and nep-ipr
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Citations: View citations in EconPapers (5)

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Journal Article: Commercialization Strategy and IPO Underpricing (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:iip:wpaper:4

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