Template-type: ReDIF-Paper 1.0
Author-Name: Serena Morricone
Author-Workplace-Name: HEC Lausanne
Author-Email: Serena.Morricone@unil.ch
Author-Name: Federico Munari
Author-Workplace-Name: University of Bologna
Author-Email: federico.munari@unibo.it
Author-Name: Raffaele Oriani
Author-Workplace-Name: LUISS Guido Carli
Author-Email: roriani@luiss.it
Author-Name: Gaetan de Rassenfosse
Author-Workplace-Name: Ecole polytechnique federale de Lausanne
Author-Email: gaetan.derassenfosse@epfl.ch
Author-Homepage: http://www.gder.info
Title: Commercialization Strategy and IPO Underpricing
Abstract: This paper studies the interplay between two defining features of technology-based firms: licensing as a commercialization strategy and the reliance on equity financing. Within the context of an IPO, we argue that the technology commercialization strategy of a firm going public affects information asymmetries and, therefore, IPO underpricing. In particular, we theorize that underpricing will be higher when a firm’s technology commercialization strategy is more based on licenses. We also posit that the size of the patent portfolio will mitigate this effect. Our results from a sample of 130 IPOs in the U.S. Semiconductor industry confirm these predictions.
Classification-JEL: G32, L24, L63, M13, O32, O34
Keywords: Initial public offering (IPO), Underpricing, License, Patent, Semiconductor
Length: 30 pages
Creation-Date: 2017-05
File-URL:  https://cdm-repec.epfl.ch/iip-wpaper/commercialization_strategy_and_IPO_underpricing.pdf
File-Format: application/pdf
Handle:  RePEc:iip:wpaper:4