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When potential shareholders cannot observe the business conditions of the firms, the latter desiring to acquire capital by an IPO and operating under less favourable business conditions have a strong incentive to appear more successful. -- IPO ; asymmetric information ; signalling game
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It is well-established that incumbent firms may try to deter new market entry by pretending to be stronger than they really are (e.g. by imitating the high output level of a low cost monopolist). In this article, we show that in some cases an incumbent may prefer the opposite, namely to...
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its relation to various aspects of corporate financial policies and corporate innovation, and draw policy implications for … enhancing corporate innovation. First, we discuss how management quality has been measured in the recent empirical literature … investment policies, and on corporate innovation. Third, we consider the recent empirical literature on the relationship between …
Persistent link: https://www.econbiz.de/10011723785
As a vital component of entrepreneurship, innovation spirit is significant for innovation performance. Utilizing the … relationship between the innovation spirit, research and development (R&D) investment, and innovation performance of micro and … small enterprises (MSEs). Our research results show that the innovation spirit of MSEs has a significant promotional effect …
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Can firms leverage public entrepreneurship investments to improve innovation and financial performance? Analysis of …
Persistent link: https://www.econbiz.de/10012971847
Governments regularly subsidize new ventures to spur innovation. This paper conducts the first large-sample, quasi …-experimental evaluation of R&D subsidies. I use data on ranked applicants to the U.S. Department of Energy's SBIR grant program. An award …
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