摘要 :
This study explores the signaling and substantive value of high-reputation affiliates to young firms, and the factors that moderate the nature of the value they provide. Specifically, the study examines the extent to which venture...
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This study explores the signaling and substantive value of high-reputation affiliates to young firms, and the factors that moderate the nature of the value they provide. Specifically, the study examines the extent to which venture capitalist (VC) reputation is related to the first-day valuation and post-IPO operating performance of the firms they take public, and whether the value of a high-reputation VC is contingent on the timing of VC involvement in the portfolio firm, the VC firms' industry-specific experience and their geographic proximity. The authors develop a time-varying, multi-item composite index of VC reputation and use a sample of VC-backed IPOs between 1990 and 2000 to test their hypotheses. The results suggest that early involvement in an IPO firm's development significantly enhances the positive relationship between a VC's reputation and both initial market reactions and post-IPO operating performance. The study also finds that the industry specialization of early-round VCs, regardless of their reputation, is positively related to post-IPO operating performance, and that the relationship is even stronger when the VC has a high reputation and invests in the first round. Finally, while the geographic proximity of VCs to their portfolio firms has no effect on the relationship between their reputation and the firm's post-IPO operating performance, investors nonetheless discount the value of VC reputation when VCs are more geographically distant from their portfolio firm. However, when endogeneity associated with having greater access to high-potential start-ups is controlled for, geographic proximity significantly decreases the relationship between VC reputation and operating performance, but it no longer affects initial market valuation.
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In this study we explore how multiple signals related to entrepreneurial companies at the time of their initial public offering (IPO) influence the firms' ability to acquire non-financial resources over time. Specifically, the stu...
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In this study we explore how multiple signals related to entrepreneurial companies at the time of their initial public offering (IPO) influence the firms' ability to acquire non-financial resources over time. Specifically, the study looks at how signals based on investors' initial reactions to the IPO, analyst coverage and affiliations with experienced venture capitalists and prominent underwriters combine to enhance the IPO firm's visibility and reduce uncertainty, thereby influencing its ability to form post-IPO alliances. We also consider the extent to which the effects of each of the signals are sustained or diminish over time.Their analysis of 404 IPOs conducted by technology companies between 1995 and 2000 shows that these signals are positively related to alliance formation patterns, and that the effects of these signals deteriorate at different rates over time.
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One of the great unanswered questions in governance research is, Why do directors serve on boards? Drawing on self-determination theory, a theory of total motivation that combines both intrinsic and extrinsic motivations, we find ...
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One of the great unanswered questions in governance research is, Why do directors serve on boards? Drawing on self-determination theory, a theory of total motivation that combines both intrinsic and extrinsic motivations, we find that the prestige associated with being a director, the ability to have influence, and identification with the director role make directors less likely to exit; however, demotivating factors related to the time commitment required, such as holding other board appointments or serving as a CEO at another company, increase the likelihood of director exits. Finally, we find that the value of being on the board of a prestigious firm diminishes when the firm experiences events that tarnish its prestige, although these same events decrease the likelihood of director exit when firm prestige is lacking.
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We investigate how the relationship between status and performance decouples over time by addressing two questions: (1) how performance affects the likelihood that an actor achieves high status and (2) how achieving high status af...
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We investigate how the relationship between status and performance decouples over time by addressing two questions: (1) how performance affects the likelihood that an actor achieves high status and (2) how achieving high status affects the actor's subsequent performance. In doing so, we focus on the role repeated certification contests play, where evaluators assess actors' performance along particular dimensions and confer high status on the contest winners. Using the context of sell-side (brokerage) equity analysts and the "All-Star" list from Institutional Investor magazine, we first investigate whether analysts who make the All-Star list are more likely to produce accurate and /or independent forecasts. Then, we investigate analyst performance after recent and multiple wins. Our results demonstrate the decoupling of status and performance over time and the roles played by both the high-status actor and the social evaluators conferring their status. Whereas analyst performance increases the likelihood of being designated an All-Star, recent and multiple All-Star designations differentially affect both how subsequent performance is assessed, and how the All-Star analysts subsequently perform. In the short term, achieving high status can increase performance and solidify an analyst's status position; however, in the long term, it can lead to lower performance and eventually result in status loss, which further erodes performance.
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This study explores how CEOs' and outside directors' desires for the benefits of signaling and "homophily" intertwine with their concerns over maintaining power and preserving local status hierarchies to affect the likelihood a fi...
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This study explores how CEOs' and outside directors' desires for the benefits of signaling and "homophily" intertwine with their concerns over maintaining power and preserving local status hierarchies to affect the likelihood a firm recruits prestigious outside directors to its board. Using pooled cross-sectional data on the five years following the initial public offerings (IPOs) of 210 firms that went public between 2001 and 2004, we found that prestigious CEOs and directors viewed the recruitment of prestigious new directors differently and that these perceptions were moderated by factors that increase the salience of risk of potential losses to CEOs and existing board members.
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In this study we advance current research on social influence in markets by examining how the recency and availability of information about others' actions within and between different communities influence their allocation of att...
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In this study we advance current research on social influence in markets by examining how the recency and availability of information about others' actions within and between different communities influence their allocation of attention and their evaluations. Specifically, we examine how the media and investors allocate attention to and evaluate newly public firms in the days following their initial public offerings (IPOs). Our findings have implications for understanding the fieldwide processes through which the value of new firms is established in markets.
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Recent high-profile corporate scandals involving prominent, high-performing firms cast doubt on assertions that the costs of getting caught decrease the likelihood such high performers will act illegally. We explain this paradox b...
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Recent high-profile corporate scandals involving prominent, high-performing firms cast doubt on assertions that the costs of getting caught decrease the likelihood such high performers will act illegally. We explain this paradox by using theories of loss aversion and hubris to examine a sample of S&P 500 manufacturers. Results demonstrate that both performance above internal aspirations and performance above external expectations increase the likelihood of illegal activities. The sample firms' prominence enhanced the effects of performance above expectations on die likelihood of illegal actions. Prominent and less prominent firms displayed different patterns of behavior when their performance failed to meet aspirations.
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The effects of intangible assets on organizational outcomes remain poorly understood. We compare the effects of two intangible assets-firm reputation and celebrity-on (1) the likelihood that a firm announces a positive or negative...
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The effects of intangible assets on organizational outcomes remain poorly understood. We compare the effects of two intangible assets-firm reputation and celebrity-on (1) the likelihood that a firm announces a positive or negative earnings surprise, and (2) investors' reactions to these surprises. We find that firms that have accumulated high levels of reputation ("high-reputation" firms) are less likely, and firms that have achieved celebrity (celebrity firms) more likely to announce positive surprises than firms without these assets. Both high-reputation and celebrity firms experience greater market rewards for positive surprises and smaller market penalties for negative surprises than other firms.
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We describe two theoretical explanations for the amount, pace, and costs of the prestige enhancement a firm engages in during the year before its initial public offering. The "snowball model" captures well-known processes whereby ...
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We describe two theoretical explanations for the amount, pace, and costs of the prestige enhancement a firm engages in during the year before its initial public offering. The "snowball model" captures well-known processes whereby prestige-rich organizations accumulate even more prestige. The "dressing-up model" builds upon deadline-induced remediation, a phenomenon not previously studied in a macro-organizational context. In 242 software IPOs, the snowball model substantially explains final-year prestigious hiring. But there is also strong evidence of a tandem dressing-up process. As the final year counts down, prestige-poor firms aggressively hire prestigious executives and directors and pay higher prices to do so.
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We extend the concept of celebrity from the individual to the firm level of analysis and argue that the high level of public attention and the positive emotional responses that define celebrity increase the economic opportunities ...
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We extend the concept of celebrity from the individual to the firm level of analysis and argue that the high level of public attention and the positive emotional responses that define celebrity increase the economic opportunities available to a firm. We develop a theoretical framework explaining how the media construct firm celebrity by creating a "dramatized reality" in reporting on industry change and firms' actions. Firms contribute to this process by taking nonconforming actions and proactively seeking to manage impressions about themselves.
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