Title
All Ties Are Not Created Equal: Institutional Equity Ties, IPO Performance, and Market Growth of New Ventures
Editors
D. Cumming (Ed.)
Document Type
Book Section
Publication Date
12-1-2018
Publication Title
The Oxford Handbook of IPOs
Publisher
Oxford University Press
Publisher Location
Oxford, United Kingdom
First page number:
460
Last page number:
484
Abstract
This chapter examines whether and how different types of institutional ties affect new venture performance at different organizational stages. The authors propose that equity ties to government agencies will enhance the speed and returns of initial public offerings (IPOs) but hinder post-IPO market growth. By contrast, equity ties to research institutes will contribute positively to both IPO performance and post-IPO market growth. The authors build their arguments on how the two types of institutional ties meet new ventures’ need to be legitimate and competitive pre- and post-IPO. They test their hypotheses with new ventures in the pharmaceutical and chemical industries that went public in China and find supportive evidence.
Keywords
Institutions; Initial public offering; IPO; Market growth; China; Competition
Disciplines
Business Administration, Management, and Operations
Language
English
Repository Citation
Li, Y.,
Yao, B.
(2018).
All Ties Are Not Created Equal: Institutional Equity Ties, IPO Performance, and Market Growth of New Ventures. In D. Cumming (Ed.),
The Oxford Handbook of IPOs
460-484.
http://dx.doi.org/10.1093/oxfordhb/9780190614577.013.38