Firm Resources and Corporate Venturing Investment

Corporate venturing (CV) in which established firms invest in new entrepreneurial businesses involves identifying opportunities and creating new combinations of resources to seize opportunities. Moving beyond literature that has focused predominantly on the consequences of CV, we adopt a resource‐based view to examine how knowledge‐based and organizational‐slack resources relate to the level of firm CV. The implications of the findings for future research are discussed. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.     

On the Demand Elasticity of Initial Public Offerings: An Analysis of Discriminatory Auctions

We analyze 52 Taiwanese IPOs that were introduced through discriminatory auctions (you pay what you bid) between December 1995 and October 1998. The evidence suggests that the elasticity of demand for IPOs in Taiwan through discriminatory auctions is relatively flat. The elasticity is significantly negatively correlated with bidders’heterogeneity, which is consistent with the investor heterogeneity hypothesis. We also find that the average winning bidders earn a significant average abnormal return of 7.83% in the post–IPO market. The post–IPO market abnormal return is positively correlated with the demand elasticity, the idiosyncratic risk of stock returns and the institutional participation rate, and is negatively correlated with the auction clearing price, which is consistent with theory. Finally, there is evidence that informed investors have an incentive to shade their demand for IPOs to avoid the winner’scurse. The most aggressive bidders (the top 5% of the winning bidders) on average incur a small loss of 1.64% (not significant) in the market–adjusted initial returns.     

Nested logit model and maximum quasi-likelihood method: a flexible methodology for analyzing interregional migration patterns

"A flexible methodology for explaining interregional migration in terms of relevant socioeconomic variables is set forth in this paper. Concerned with setting observation against theory, it makes use of (1) the nested logit model as a theoretical substratum, and (2) the maximum quasi-likelihood method as a method for parameter estimation and statistical inference. Application to interprovincial migration data over a 22-year period (1961-1962 to 1982-1983) shows that, in Canada, migration does not appear to serve well as an equalizer of economic opportunities."