Commercialization Strategy and IPO Underpricing

This paper studies the interplay between two defining features of technology-based firms: licensing as a commercialization strategy and the reliance on equity financing. Within the context of an IPO, we argue that the technology commercialization strategy of a firm going public affects information asymmetries and, therefore, 120 underpricing. In particular, we theorize that underpricing will be higher when a firm's technology commercialization strategy is more based on licenses. We also posit that the size of the patent portfolio will mitigate this effect. Our results from a sample of 130 IPOs in the U.S. semiconductor industry confirm these predictions.


Published in:
Research Policy, 46, 6, 1133-1141
Year:
2017
Publisher:
Amsterdam, Elsevier
ISSN:
0048-7333
Keywords:
Laboratories:




 Record created 2017-07-10, last modified 2018-09-13


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