التفاصيل البيبلوغرافية
| العنوان: |
Innovation Potential, Insider Sales, and IPO Performance: How Firms Can Mitigate the Negative Effect of Insider Selling. |
| المؤلفون: |
Cao, Zixia (AUTHOR), Song, Reo (AUTHOR), Sorescu, Alina (AUTHOR) zixia.cao@ucdenver.edu, Chua, Ansley (AUTHOR) |
| المصدر: |
Journal of Marketing. Jul2023, Vol. 87 Issue 4, p550-574. 25p. 1 Diagram, 6 Charts. |
| مصطلحات موضوعية: |
*GOING public (Securities), *MARKET value, *INNOVATIONS in business, *CONSUMER package goods, *PHARMACEUTICAL industry, *PATENTS |
| مستخلص: |
At the time of an initial public offering (IPO), firms seek to maximize their stock market value. The authors theorize and show that a firm's innovation potential—firm outputs and activities that contribute to the development of future new products—can be used by the managers of IPO firms as a credible signal of the quality of the firm. Using a sample of 370 IPO firms from the consumer-packaged goods and pharmaceutical industries, and three metrics of innovation potential, the authors show that firms' innovation potential is (1) positively associated with the initial value of the IPO and with the first-day IPO returns and (2) negatively associated with the extent to which insiders sell their shares at the time of the IPO. The effectiveness of the three metrics of innovation potential as a signal of firm quality varies: patents have a stronger impact on insider sales than preannouncements and generic references to future innovation, while preannouncements have the strongest impact on first-day IPO returns. The article presents a nuanced view of the extent to which various firm stakeholders consider information about firms' innovation potential to be a credible signal that reduces the adverse selection present in IPO deals with insider sales. [ABSTRACT FROM AUTHOR] |
|
Copyright of Journal of Marketing is the property of American Marketing Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) |
| قاعدة البيانات: |
Business Source Index |