The Impact of Slack Resources on High–Tech IPOs

Fariss–Terry Mousa and Richard Reed

Entrepreneurship Theory and Practice, 2013, vol. 37, issue 5, 1123-1147

Abstract: Research on organization slack has focused mainly on its effect in large publicly traded firms, but little work exists on the value of slack resources for other firms. Therefore, here, we address the question: Do slack resources matter in the case of initial public offerings (IPOs)? We argue that firms that possess financial, innovational, and managerial slack resources are sending a positive signal to potential investors regarding the quality of the IPO. Using a sample of high–tech IPOs, we find support for that contention.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:37:y:2013:i:5:p:1123-1147

DOI: 10.1111/etap.12001

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