Fariss-Terry Mousa is an assistant professor in the Department of Management, College of Business, 421 Bluestone Drive, Zane Showker Hall 520, MSC 0205, James Madison University, Harrisonburg, VA 22807, USA.
The Impact of Slack Resources on High-Tech IPOs
Article first published online: 16 JAN 2013
© 2013 Baylor University
Entrepreneurship Theory and Practice
Volume 37, Issue 5, pages 1123–1147, September 2013
How to Cite
Mousa, F.-T. and Reed, R. (2013), The Impact of Slack Resources on High-Tech IPOs. Entrepreneurship Theory and Practice, 37: 1123–1147. doi: 10.1111/etap.12001
- Issue published online: 10 SEP 2013
- Article first published online: 16 JAN 2013
Research on organization slack has focused mainly on its effect in large publicly traded firms, but little work exists on the value of slack resources for other firms. Therefore, here, we address the question: Do slack resources matter in the case of initial public offerings (IPOs)? We argue that firms that possess financial, innovational, and managerial slack resources are sending a positive signal to potential investors regarding the quality of the IPO. Using a sample of high-tech IPOs, we find support for that contention.