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Full-Text Articles in Business
How First Mover Advantages And Agglomeration Economies Affect Foreign Entry Survival, Jing'an Tang, Ben S. Liu
How First Mover Advantages And Agglomeration Economies Affect Foreign Entry Survival, Jing'an Tang, Ben S. Liu
WCBT Faculty Publications
While entry timing literatures suggest firms to enter a foreign market as pioneers to gain the first mover advantages, studies on entry locations recommend firms to enter a market where there is already a critical mass of their peers, i.e., to be late movers in order to benefit from the agglomeration effects. As two important dimensions of foreign entry strategy, entry timing and location literatures seem to offer opposite recommendations. To resolve this apparent paradox, this study builds a network-based foreign entry and performance model. We argue that these two dimensions of market entry are interdependent. Entry strategies that can …
Signaling, Resource-Based Power, And Pre-Ipo Organizational Change, John S. Pearlstein, Robert D. Hamilton
Signaling, Resource-Based Power, And Pre-Ipo Organizational Change, John S. Pearlstein, Robert D. Hamilton
New England Journal of Entrepreneurship
The theory presented suggests that underwriters are both advisors and independent agents in the issuer’s attempt to send “signals” of quality to investors by making pre-IPO organizational changes. These pre-IPO gambits are intended to increase IPO proceeds, and preemptively address potential investor concerns that would deter them from subscribing. These organizational changes initially can financially benefit founders, early investors and underwriters. But they can also have a longterm impact that some issuers, especially founders, would prefer to avoid. Utilizing signaling and resource-based power, we find that underwriter power is significantly associated with making pre-IPO gambits and lower levels of underpricing.