Document Type

Article

Publication Date

2013

Publication Title

Entrepreneurship Theory and Practice

Keywords

Information Systems

Disciplines

Technology and Innovation

Abstract

Research on organization slack has focused mainly on its effect in large publicly traded firms, but little work exists on the value of slack resources for other firms. Therefore, here, we address the question: Do slack resources matter in the case of initial public offerings (IPOs)? We argue that firms that possess financial, innovational, and managerial slack resources are sending a positive signal to potential investors regarding the quality of the IPO. Using a sample of high-tech IPOs, we find support for that contention.

DOI

10.1111/etap.12001

Version

Postprint

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