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- Title
Valuing University-Based Firms: The Effects of Academic Affiliation on IPO Performance.
- Authors
Bonardo, Damiano; Paleari, Stefano; Vismara, Silvio
- Abstract
This paper investigates for the first time the valuation of university-based companies and their ability to translate the potential benefits of academic affiliation into long-term performance gains. It contributes to the literature on technology transfer by expanding the view from the product market to the financial market. Among the 499 high-tech SMEs that went public on the stock markets of Germany, the U.K., France, and Italy between 1995 and 2003, we find that 131 were university-based firms. For firms who publicize the fact that they are university based and have chosen to go public, the affiliation with a university is recognized as beneficial by investors. Our econometric models show that affiliation with a university enhances valuation, in particular when academics are present in the Top Management Team at the time of the initial public offering. However, over the long run, university-based companies exhibit worse operating performance than independent firms.
- Subjects
UNIVERSITY-based new business enterprises; ACADEMIC-industrial collaboration; GOING public (Securities); TECHNOLOGY transfer; INVESTORS; INDUSTRIAL management
- Publication
Entrepreneurship: Theory & Practice, 2011, Vol 35, Issue 4, p755
- ISSN
1042-2587
- Publication type
Article
- DOI
10.1111/j.1540-6520.2010.00369.x