The Impact of Timing and Firm Capabilities on the Amount of Capital Raised in an Initial Public Offering: Evidence From the Biotechnology Industry.

Deeds, David; DeCarolis, Donna Marie; Coombs, Joseph E.

doi:10.5465/ambpp.1996.4978713

Cited by 134 publications

(243 citation statements)

References 2 publications

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“…Another way of establishing credibility for investment is via the scientific publication records of the biotechnology firm's scientific team (Deeds et al, 1997). In NewPharma, for example, those involved believed publication in a reputable scientific journal was crucial for public validation.…”

Section: Integrative Capabilitiesmentioning

confidence: 99%

Modes of organizing biomedical innovation in the UK and US and the role of integrative and relational capabilities

et al. 2007

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Biomedical innovation typically involves intense collaboration across diverse disciplines, occupations and organizations. Given this, a nation's integrative capabilities (the ability to move between basic science and clinical development) and relational capabilities (the ability to collaborate with diverse organizations) have been identified as crucial for encouraging innovation. However, the impact of such capabilities on innovation has been considered, to date, mainly in macro, structural terms -explaining US national competitive advantage, for example. This paper draws, instead, from a qualitative analysis of biomedical innovation in the UK and US to identify mechanisms influencing innovation at the project level through which macro level capabilities may be having effects. From this we develop a propositional framework that helps to explain the likely impact of such capabilities for characteristically different kinds of innovation projects at the micro level.

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Section: Integrative Capabilitiesmentioning

confidence: 99%

Modes of organizing biomedical innovation in the UK and US and the role of integrative and relational capabilities

et al. 2007

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“…Other studies have examined the impact of firm-specific capabilities on the amount of capital raised in an IPO. For example, in their research on biotechnology firms, Deeds et al (1997) examined the impact of variables such as the location of the firm, the quality of the research staff, the number of products in development, the number of patents held by the firm, and the firm's prior spending on R&D. Amini (2013) analysed the relevance of spatial proximity to London in explaining the amount of money raised by small British firms at IPO and found that spatial proximity to London does have a significant impact; however, contrary to many other studies, he also found that the impacts of profitability, firm age, and hot-market condition are not significant. This is surprising, because, for example, McConaughy, Dhatt, and suggest that firms that perform well before going public have a better chance of success afterwards.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

“…Another novelty of the article is the use of a new measure of success in raising capital. In previous studies, the proceeds divided by total assets (at the end of the IPO year or at the beginning of the IPO year) (Alti, 2006;Çelik & Akarim, 2013;Kim & Weisbach, 2008) and the nominal value of proceeds (Amini, 2013;Callaghan, Kleiman, & Sahu, 1999;Deeds, Decarolis, & Coombs, 1997;Gulati & Higgins, 2003;Mousa, Wales, & Harper, 2015;Zimmerman, 2008) have been used. Our measure reflects the point of view of issuers and is appropriate to measure their success.…”

Section: Introductionmentioning

confidence: 99%

Is the success of an issuer an investor success? Evidence from Polish IPOs

Brycz

Dudycz

Kowalski

2017

Baltic Journal of Economics

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This article examines the factors that determine IPO success in raising equity capital, and how this success translates into investor success. The study is based on a sample of IPOs on the Warsaw Stock Exchange from 1998 to 2011. We find that pre-IPO profitability is a strong and positive signal for investors that translates into a higher offer price and therefore determines the success of the issuance. However, companies with high IPO success do not provide investors with better performance after going public, nor do they provide protection before the common phenomenon of long-term underperformance. A large-scale value migration between shareholders occurs in companies that achieve IPO success. The investor belief that pre-IPO profitability is a signal of the future earnings potential of an IPO firm indicates that they probably use simple heuristics and have a representativeness bias. ARTICLE HISTORY

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“…Madhok and Osegowitsch (2000) characterize biotechnology as a global hightechnology industry, requiring companies to internationalize their activities very early in their development due to the inadequacy of home-market demand to sustain the firm's development and growth. Biotechnology companies constitute an appropriate sample population because it is believed that companies specialized in this type of technology rely upon different publics to survive, such as potential investors, R&D, and marketing partners (Baum, Calabrese, and Silverman 2000;Baum and Silverman 2004;Deeds, Decarolis, and Coombs 1997;Priest 1995).…”

Section: Samplementioning

confidence: 99%

Influence of entry modes on communication strategies of international new ventures in foreign markets: a preliminary study

Veilleux

Haskell

Pons³

2011

IJBG

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International new ventures (INVs) -those that from the inception seek to use their ressources and to sell their output in international markets -have been the subject of much research for more than a decade. However, research on INVs has so far ignored the importance of communication strategies directed toward foreign stakeholders during the internationalization of these young firms. In addition, INVs may utilize different and at times progressively more complex entry modes into foreign markets (for example, exporting, licensing, direct investment).An important concern is then the necessity to develop and implement appropriate communication strategies towards foreign stakeholders as the firm evolves in terms of its international activities.This study examines communication strategies of INVs in foreign markets when pursuing different entry modes. A communications model is used to develop propositions and these are explored based on interviews with 22 executives in high-tech companies. Insights for managerial practice and for future research are provided. Results suggest that INVs do communicate with different publics as they internationalize; however, they are not taking full advantage of a carefully planned communications strategy or of all the communications tools available. Key wordsInternational New Ventures, modes of entry, communication. This study takes the first step in exploring this process by examining the role of international corporate communications, or "marketing the firm" to international stakeholders (sometimes referred to as public communications or public relations) as opposed to marketing products and services to foreign customers through advertising and promotion). Specifically, this study addresses two research questions: first, whether INVs use different communication strategies when they approach foreign markets in different ways (i.e., using different entry modes); second, whether their communications becomes more formalized as they engage in more complex entry modes.After a brief presentation of INVs and their specific needs for communication during the internationalization process, communications strategy and related propositions will be presented.And since internationalization strategies and practices may differ by industry, these propositions will be investigated and discussed from the viewpoint of high-tech INVs (an industry frequently used in INV studies). Analysis and results are then presented and discussed. Managerial implications are suggested for INV managers. LITERATURE REVIEW International New Ventures (INVs)In the late 1980s, McDougall (1989) Communication and INVsNew ventures cannot rely, as established firms do, on corporate image, brand recognition, or financial track record when attempting to acquire resources from stakeholders for start-up and There is a paucity of models in the communication literature which could be used to evaluate communication strategies and practices of INVs and the overall quality of communication strategy. However, Belch, Belch and Gu...

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The Impact of Timing and Firm Capabilities on the Amount of Capital Raised in an Initial Public Offering: Evidence From the Biotechnology Industry.

Cited by 134 publications

References 2 publications

Modes of organizing biomedical innovation in the UK and US and the role of integrative and relational capabilities

Modes of organizing biomedical innovation in the UK and US and the role of integrative and relational capabilities

Is the success of an issuer an investor success? Evidence from Polish IPOs

Influence of entry modes on communication strategies of international new ventures in foreign markets: a preliminary study

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