John S. Pearlstein and Robert D. Hamilton
The theory presented suggests that underwriters are both advisors and independent agents in the issuerʼs attempt to send “signals” of quality to investors by making pre-IPO…
Abstract
The theory presented suggests that underwriters are both advisors and independent agents in the issuerʼs attempt to send “signals” of quality to investors by making pre-IPO organizational changes. These pre-IPO gambits are intended to increase IPO proceeds, and preemptively address potential investor concerns that would deter them from subscribing. These organizational changes initially can financially benefit founders, early investors and underwriters. But they can also have a longterm impact that some issuers, especially founders, would prefer to avoid. Utilizing signaling and resource-based power, we find that underwriter power is significantly associated with making pre-IPO gambits and lower levels of underpricing.
Details
Keywords
A. Banu Goktan, Alka Gupta, Subhendu Mukherjee and Vishal K. Gupta
The link between social interaction and entrepreneurial activity has attracted considerable attention in the entrepreneurship literature. In this study, we focus on individual…
Abstract
The link between social interaction and entrepreneurial activity has attracted considerable attention in the entrepreneurship literature. In this study, we focus on individual cultural values, shaped by interactions in the social space, as they relate to opportunity evaluation, a cornerstone of the entrepreneurial process. We test our predictions in India, a non-Western society that has sustained one of the highest rates of entrepreneurial activity in the world. Our findings suggest that value orientation of high power distance is negatively associated with opportunity evaluation whereas uncertainty avoidance, collectivism, and femininity are positively associated with opportunity evaluation.
Details
Keywords
Family businesses do not perpetuate themselves. Entrepreneurs must nurture and propagate the values that led to the creation of the very thing most precious to them‐their…
Abstract
Family businesses do not perpetuate themselves. Entrepreneurs must nurture and propagate the values that led to the creation of the very thing most precious to them‐their business.This of course depends on stability. Nor do these cherished values propagate themselves. To be made meaningful for others, and for future generations, family experiences, values, and achievements must be communicated to others via language, narrative and storytelling, or other forms embedded in the narrative such as symbols. Often a variety of different socially constructed stories may be necessary contingent upon situation, purpose, or need.