Signaling, resource-based power, and pre-IPO organizational change
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 investo...
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Online Access: | https://www.emerald.com/insight/content/doi/10.1108/NEJE-15-01-2012-B003/full/pdf?title=signaling-resource-based-power-and-pre-ipo-organizational-change |
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doaj-595f9282e4084058ae61bfdf2781e4be2020-11-24T22:11:22ZengEmerald PublishingNew England Journal of Entrepreneurship2574-89042012-03-01151294210.1108/NEJE-15-01-2012-B003Signaling, resource-based power, and pre-IPO organizational changeJohn S. Pearlstein0Robert D. Hamilton1Stockton UniversityTemple UniversityThe 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.https://www.emerald.com/insight/content/doi/10.1108/NEJE-15-01-2012-B003/full/pdf?title=signaling-resource-based-power-and-pre-ipo-organizational-changeinitial public offeringsresource-based powersignalingorganizational theoryunderpricing |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
John S. Pearlstein Robert D. Hamilton |
spellingShingle |
John S. Pearlstein Robert D. Hamilton Signaling, resource-based power, and pre-IPO organizational change New England Journal of Entrepreneurship initial public offerings resource-based power signaling organizational theory underpricing |
author_facet |
John S. Pearlstein Robert D. Hamilton |
author_sort |
John S. Pearlstein |
title |
Signaling, resource-based power, and pre-IPO organizational change |
title_short |
Signaling, resource-based power, and pre-IPO organizational change |
title_full |
Signaling, resource-based power, and pre-IPO organizational change |
title_fullStr |
Signaling, resource-based power, and pre-IPO organizational change |
title_full_unstemmed |
Signaling, resource-based power, and pre-IPO organizational change |
title_sort |
signaling, resource-based power, and pre-ipo organizational change |
publisher |
Emerald Publishing |
series |
New England Journal of Entrepreneurship |
issn |
2574-8904 |
publishDate |
2012-03-01 |
description |
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. |
topic |
initial public offerings resource-based power signaling organizational theory underpricing |
url |
https://www.emerald.com/insight/content/doi/10.1108/NEJE-15-01-2012-B003/full/pdf?title=signaling-resource-based-power-and-pre-ipo-organizational-change |
work_keys_str_mv |
AT johnspearlstein signalingresourcebasedpowerandpreipoorganizationalchange AT robertdhamilton signalingresourcebasedpowerandpreipoorganizationalchange |
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1725805983421169664 |