Back to Search
Start Over
Examining Affective and Cognitive Discourse at the Time of IPO: Effects on Underpricing and the Moderating Role of Entrepreneurial Orientation.
- Source :
- New England Journal of Entrepreneurship (New England Journal of Entrepreneurship); 2016, Vol. 19 Issue 2, preceding p12-24, 14p
- Publication Year :
- 2016
-
Abstract
- This study presents evidence concerning the effects of affective and cognitive rhetoric on the underpricing of firms at the time of their initial public offering. It is suggested that firms that use less affective, and more cognitively oriented discourse in their IPO prospectus will experience better underpricing outcomes. We examine these assertions using a sample of young high-tech IPO firms where investors rely on prospectuses as accurate and informative firm communications. Results from a robust five-year time span observe initial support for the hypothesized effects. Moreover, the signaling of a higher degree of entrepreneurial orientation in the firm prospectus is found to worsen the negative effects of affective discourse on underpricing. Study implications are discussed. [ABSTRACT FROM AUTHOR]
- Subjects :
- STRATEGIC planning
GOING public (Securities)
COGNITIVE analysis
Subjects
Details
- Language :
- English
- ISSN :
- 1550333X
- Volume :
- 19
- Issue :
- 2
- Database :
- Supplemental Index
- Journal :
- New England Journal of Entrepreneurship (New England Journal of Entrepreneurship)
- Publication Type :
- Academic Journal
- Accession number :
- 118896521
- Full Text :
- https://doi.org/10.1108/NEJE-19-02-2016-B002