Abstract
Relying on one of the more notable entrepreneurial settings, an initial public offering (IPO), this article extends prior work on top management team (TMT) characteristics. We examine whether or not prestigious TMTs at the time of an IPO enhance organizational legitimacy and thereby provide a signal to potential investors. Because an IPO represents an entrepreneurial context characterized by high levels of uncertainty, we also consider the impact of environmental uncertainty on the TMT prestige/investor valuation relationship. We find that both an element of TMT prestige and environmental uncertainty influence investor valuations. However, we also find that the influence of prestige does not assuage investors when analyzing IPOs in different environmental conditions.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 1-26 |
| Number of pages | 26 |
| Journal | Journal of Small Business Management |
| Volume | 44 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 2006 |
| Externally published | Yes |
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ASJC Scopus subject areas
- Management of Technology and Innovation
- Strategy and Management
- Business, Management and Accounting(all)
Cite this
Initial public offering investor valuations : An examination of top management team prestige and environmental uncertainty. / Lester, Richard H.; Certo, Samuel; Dalton, Catherine M.; Dalton, Dan R.; Cannella, Albert A.
In: Journal of Small Business Management, Vol. 44, No. 1, 01.2006, p. 1-26.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Initial public offering investor valuations
T2 - An examination of top management team prestige and environmental uncertainty
AU - Lester, Richard H.
AU - Certo, Samuel
AU - Dalton, Catherine M.
AU - Dalton, Dan R.
AU - Cannella, Albert A.
PY - 2006/1
Y1 - 2006/1
N2 - Relying on one of the more notable entrepreneurial settings, an initial public offering (IPO), this article extends prior work on top management team (TMT) characteristics. We examine whether or not prestigious TMTs at the time of an IPO enhance organizational legitimacy and thereby provide a signal to potential investors. Because an IPO represents an entrepreneurial context characterized by high levels of uncertainty, we also consider the impact of environmental uncertainty on the TMT prestige/investor valuation relationship. We find that both an element of TMT prestige and environmental uncertainty influence investor valuations. However, we also find that the influence of prestige does not assuage investors when analyzing IPOs in different environmental conditions.
AB - Relying on one of the more notable entrepreneurial settings, an initial public offering (IPO), this article extends prior work on top management team (TMT) characteristics. We examine whether or not prestigious TMTs at the time of an IPO enhance organizational legitimacy and thereby provide a signal to potential investors. Because an IPO represents an entrepreneurial context characterized by high levels of uncertainty, we also consider the impact of environmental uncertainty on the TMT prestige/investor valuation relationship. We find that both an element of TMT prestige and environmental uncertainty influence investor valuations. However, we also find that the influence of prestige does not assuage investors when analyzing IPOs in different environmental conditions.
UR - http://www.scopus.com/inward/record.url?scp=33645161560&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33645161560&partnerID=8YFLogxK
U2 - 10.1111/j.1540-627X.2006.00151.x
DO - 10.1111/j.1540-627X.2006.00151.x
M3 - Article
VL - 44
SP - 1
EP - 26
JO - Journal of Small Business Management
JF - Journal of Small Business Management
SN - 0047-2778
IS - 1
ER -