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.

Commercialization Strategy and IPO Underpricing / Morricone, Serena; Munari, Federico; Oriani, Raffaele; de Rassenfosse, Gaetan. - In: RESEARCH POLICY. - ISSN 0048-7333. - 46:6(2017), pp. 1133-1141. [10.1016/j.respol.2017.04.006]

Commercialization Strategy and IPO Underpricing

Oriani, Raffaele;
2017

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.
Endogeneity; Initial public offering (IPO); License; Patent; Semiconductor; Underpricing; Engineering (all); Strategy and Management1409 Tourism, Leisure and Hospitality Management; Management Science and Operations Research; Management of Technology and Innovation
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11385/177744
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