Entrepreneurship Theory and Practice
Technology and Innovation
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.
Mousa, F., Reed, R. (2013). The Impact of Slack Resources on High-Tech IPOs. Entrepreneurship Theory and Practice, pp. 1123-1147.
This is the accepted version of the following article: Mousa, F., Reed, R. (2013). The Impact of Slack Resources on High-Tech IPOs. Entrepreneurship Theory and Practice, pp. 1123-1147, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/etap.12001/full