Information asymmetry and investor valuation of IPOs: top management team legitimacy as a capital market signal

By Boyd Cohen, Thomas J. Dean. 2005

566 citations recorded by the source corpus.

Subfields: Accounting, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/74f46c70c9cbde3162352ed1818c61ad3efe6c20

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In Accounting

In Organizational Behavior and Human Resource Management

Citations in the corpus

The role of information asymmetry in the choice of entrepreneurial exit routes (2014, background): “…prior to the job offer (Stiglitz, 2000), boards that lack sufficient knowledge on the characteristics of firm-external CEO candidates (Zajac, 1990), and investors who want to know the true value of a firm before they acquire it (Capron and Shen, 2007) or invest in it (Cohen and Dean, 2005).”
Trademarks and Venture Capital Valuation (2014, unknown): “29 budget information or initial sales data (Certo et al., 2001; Cohen and Dean, 2005; Connely et al., 2011; Karamanos, 2003; Sliwka, 2007).”
IPO Research in Management and Entrepreneurship: Moving the Agenda Forward (2009, background): “Cohen and Dean (2005), for instance, found that measures of management quality (e.g., prior managerial experience, prior industry experience, and age) were associated with less underpricing, suggesting that these individuals are able to capture greater value for their firms.”
Resources and Relationships in Entrepreneurship: An Exchange Theory of the Development and Effects of the Entrepreneur-Investor Relationship (2017, background): “…and investors value market knowledge and strategic advice (information); referrals, recommendations, and enhanced reputations (influence); and feelings of being a part of “the next big thing” (solidarity; e.g., Cohen & Dean, 2005; Rose, 2014; Schürmann, 2006; Shepherd & Zacharakis, 2001).”
The Use of Signals in New-Venture Financing: A Review and Research Agenda (2021, background): “One example is the effectiveness of human capital, especially the entrepreneur’s educational background and accomplishments, to signal quality and legitimacy (e.g., Cohen & Dean, 2005; Nagy et al., 2012).”
A Cross-Disciplinary Exploration of Entrepreneurship Research (2007, background): “and financial characteristics and outcomes of restructuring actions (Allen, Lummer, McConnell, & Reed, 1995; Denning & Shastri, 1993; Johns, 1993). However, the majority of finance research that intersects with entrepreneurship work examines characteristics of IPOs and the actual acquisition of fina”
Signaler Credibility, Signal Susceptibility, and Relative Reliance on Signals: How Stakeholders Change their Evaluative Processes After Violation of Expectations and Rehabilitative Efforts (2017, background): “…undergoing an IPO may be able to indicate that they are of high investment quality through signals such as the backgrounds of their executives (Cohen & Dean, 2005; Higgins & Gulati, 2006), incentive and board structures (Certo, 2003; Certo,Daily, &Dalton, 2001; Sanders&Boivie, 2004), the…”
Social Capital of Young Technology Firms and Their IPO Values: The Complementary Role of Relevant Absorptive Capacity (2011, unknown): “Third, we control for the experience of the upper echelon, (i.e., top managers and directors; e.g., Cohen and Dean 2005).”
Unraveling the link between managerial risk-taking and innovation: The mediating role of a risk-taking climate (2015, background): “Signal receivers (here, employees), will use these signals to make more informed decisions (Cohen and Dean, 2005).”