When less is more: EO's influence upon funds raised by young technology firms at IPO

Fariss-Terry Mousa, William J. Wales and Steven R. Harper

Journal of Business Research, 2015, vol. 68, issue 2, 306-313

Abstract: This study examines the influence of entrepreneurial orientation (EO) on the amount of capital raised by a young technology firm at the time of its initial public offering (IPO). We draw on signaling theory and an exploration–exploitation theoretical perspective to develop insights concerning the influence of EO upon IPO valuation. Results indicate a negative relationship between EO, as signaled within the firm prospectus, and IPO value. Moreover, top management team (TMT) external board activities are found to moderate the EO–IPO value relationship. With TMT external board activities, a more pronounced negative relationship is indicated. However, without TMT external board activities, stronger EO signals are found to positively impact the amount of funds raised at IPO. The implications of these findings are discussed.

Keywords: Entrepreneurial orientation; Initial public offering; Top management team external board activities; Computer-aided text analysis (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296314002343
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:2:p:306-313

DOI: 10.1016/j.jbusres.2014.07.003

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().