Firms raise a significant amount of funds and gain competitive advantage over their rivals through equity financing, namely through initial public offerings and seasoned equity offerings. The authors find that both initial public offering firms and seasoned equity offering firms adopt a more aggressive marketing strategy during the two years following their offering. However, not all equity iss…
The authors examine an important anomaly in investment behavior - namely, the tendency to fall prey to the effects of contextual and presentation biases, which emerge when people make different decisions as a function of how information is presented to them. They also identify an important factor that moderates these effects. The results from four studies show that investors with a stronger ten…
The purpose of this article is to investigate how strategic emphases of merging firms (marketing or research and development) create value in a merger context. The authors suggest that strategic emphasis alignment - the extent to which the resource configurations of acquirer and target firms are similar to or distinct from one another - is a key construct that facilitates value creation. Using …