Research Policy 2017

Commercialization Strategy and IPO Underpricing

Serena Morricone¹; Federico Munari²; Raffaele Oriani³; Gaétan de Rassenfosse⁴

¹ University of Lausanne · ² University of Bologna · ³ Libera Università Internazionale degli Studi Sociali Guido Carli · ⁴ École Polytechnique Fédérale de Lausanne

Abstract

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, IPO 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.

DOI

10.1016/j.respol.2017.04.006

Sources

semanticscholar openalex

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APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓