Advanced Search

Journal Navigation

Journal Home

Subscriptions

Archive

Contact Us

Table of Contents

Sign In to gain access to subscriptions and/or personal tools.
Strategic Organization
This Article
Right arrow Full Text (PDF)
Right arrow References
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Right arrow Citation Map
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Similar articles in ISI Web of Science
Right arrow Alert me to new issues of the journal
Right arrow Add to Saved Citations
Right arrow Download to citation manager
Right arrowRequest Permissions
Right arrow Request Reprints
Right arrow Add to My Marked Citations
Citing Articles
Right arrow Citing Articles via Google Scholar
Right arrow Citing Articles via Scopus
Google Scholar
Right arrow Articles by Ragozzino, R.
Right arrow Articles by Reuer, J. J.
Right arrow Search for Related Content
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us   Add to Digg   Add to Reddit   Add to Technorati  
What's this?

Initial public offerings and the acquisition of entrepreneurial firms

Roberto Ragozzino

University of Illinois at Chicago, USA

Jeffrey J. Reuer

University of North Carolina, USA, reuer{at}unc.edu

Information asymmetries between buyers and sellers can create inefficiencies in mergers & acquisition (M&A) markets and prevent acquirers from gaining access to valuable resources and capabilities via acquisitions. Entrepreneurial firms face similar problems in raising external capital, due to the asymmetric information that separates them from prospective investors. In this article, we bring together the strategy, financial economics and entrepreneurship literatures and exploit the initial public offering (IPO) context to examine the informational characteristics of newly public entrepreneurial firms. We construct hazard models that offer strong evidence that certain IPO characteristics signal the value of entrepreneurial firms and thereby attract M&A suitors.

Key Words: adverse selection • entrepreneurship • IPO • M&A • small firms

Strategic Organization, Vol. 5, No. 2, 155-176 (2007)
DOI: 10.1177/1476127007079139
Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us   Add to Digg Digg   Add to Reddit Reddit   Add to Technorati Technorati    What's this?