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Article
Publication date: 1 March 2016

Examining affective and cognitive discourse at the time of IPO: Effects on underpricing and the moderating role of entrepreneurial orientation

William Wales and Fariss-Terry Mousa

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…

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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

Details

New England Journal of Entrepreneurship, vol. 19 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/NEJE-19-02-2016-B002
ISSN: 2574-8904

Keywords

  • firm discourse
  • initial public offering
  • prospectus
  • language
  • entrepreneurial orientation

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Article
Publication date: 1 March 2013

Configurations of slack and their performance implications: an examination of high‐tech IPOs

Fariss‐Terry Mousa, Dan Marlin and William J. Ritchie

This study aims to improve the understanding of the relationship between organizational slack and firm performance for high technology initial public offerings (IPOs).

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Abstract

Purpose

This study aims to improve the understanding of the relationship between organizational slack and firm performance for high technology initial public offerings (IPOs).

Design/methodology/approach

Using cluster analysis the paper investigates configurations of slack and their associated performance implications.

Findings

The findings indicate the existence of distinct configurations of slack resources and associated performance differences among the configurations. Implications of the findings for managerial practice and future research are discussed.

Originality/value

The purpose of this study is to extend slack measurement research by examining the slack and performance relationship in high‐technology IPOs from a configurational perspective.

Details

Management Decision, vol. 51 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/00251741311301795
ISSN: 0025-1747

Keywords

  • Organizational slack
  • Configurations
  • High‐technology IPOs
  • IPO performance
  • Performance management
  • Companies
  • Stock prices

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Article
Publication date: 1 April 2014

The relationship between organizational slack and innovation: revisited

Fariss Terry Mousa and Jaideep Chowdhury

The slack-innovation relationship has interested scholars for years. The authors aim to delve into the impact of financial slack on firm innovation by replicating a…

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Abstract

Purpose

The slack-innovation relationship has interested scholars for years. The authors aim to delve into the impact of financial slack on firm innovation by replicating a classic study arguing that this relationship has an inverse U-shape.

Design/methodology/approach

The sample consists of all US firms that were publicly traded between 1993 and 2011. The authors employ the standard econometrics methodology of panel regression with firm-fixed effect and time-fixed effect to estimate the regression equation of firm innovation on financial slack.

Findings

The authors find that the relationship between financial slack and R&D investments is similar to that suggested by earlier authors, thus enhancing the generalizability of this important finding in management research. The authors also find that this relationship holds even during economic downturns.

Originality/value

The authors replicate Nohria and Gulati's classic study by considering the impact of slack on innovation. The authors also move away from survey data, as used by Nohria and Gulati. The authors utilize actual firm-level data for a large sample of US publicly traded firms from 1993 to 2011, thus enhancing the generalizability of these findings.

Details

American Journal of Business, vol. 29 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/AJB-06-2013-0036
ISSN: 1935-5181

Keywords

  • Strategic management
  • Replication
  • Financial slack
  • Firm innovation
  • Organizational slack
  • R&D spending

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Article
Publication date: 13 May 2014

Founder-CEO board involvement and optimal IPO valuation

Fariss-Terry Mousa, William J. Ritchie and Richard Reed

The purpose of this paper is to extend governance research in the small business context by examining the moderating influence of top executive involvement on the board of…

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Abstract

Purpose

The purpose of this paper is to extend governance research in the small business context by examining the moderating influence of top executive involvement on the board of directors on market valuation.

Design/methodology/approach

Drawing on a sample of initial public offering (IPO) high-tech firms engaged in late-stage funding, the study uses stepwise regression to test board involvement moderation effects.

Findings

Primary market investors reward governance structures that limit founder power.

Originality/value

The current study introduces the notion that optimal market valuation depends not only on whether a CEO-founder governs the firm, but also on level of involvement on the board of directors.

Details

Management Decision, vol. 52 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/MD-02-2013-0088
ISSN: 0025-1747

Keywords

  • Board of Directors’ involvement
  • Founder and non-founder-CEOs
  • High-tech firms
  • IPO firm performance

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Article
Publication date: 2 March 2012

Founder effectiveness in leveraging entrepreneurial orientation

Fariss‐Terry Mousa and William Wales

This paper aims to explore the effects of entrepreneurial orientation (EO) on firm survival and examine whether founder chief executive officers (CEOs) are more effective…

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Abstract

Purpose

This paper aims to explore the effects of entrepreneurial orientation (EO) on firm survival and examine whether founder chief executive officers (CEOs) are more effective than other types of managers at utilizing entrepreneurial orientation at initial public offerings (IPOs).

Design/methodology/approach

Using survival analysis the authors investigate the effects of EO on firm survival as well as the moderating role of founder CEOs.

Findings

The results suggest that EO increases post‐IPO survival. Further, founder‐CEOs moderate the EO‐survival relationship.

Originality/value

The paper shows that entrepreneurial orientation enhances long‐term survival in IPO firms. Survival is an important, though generally overlooked consideration in EO research. The paper also concludes that firms with founder CEOs are more likely to value and implement EO. Finally, the paper addresses calls for greater use of secondary measures of EO.

Details

Management Decision, vol. 50 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/00251741211203588
ISSN: 0025-1747

Keywords

  • Entrepreneurial orientation
  • Founder chief executive officers
  • Entrepreneurialism
  • Business environment
  • Business enterprise

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Article
Publication date: 10 April 2009

The Gilbreths' quality system stands the test of time

Fariss‐Terry Mousa and David J. Lemak

This paper aims to discuss the work of Frank and Lillian Gilbreth and how it is still a fundamental part of business in the twenty‐first century. It is also proposed that…

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Abstract

Purpose

This paper aims to discuss the work of Frank and Lillian Gilbreth and how it is still a fundamental part of business in the twenty‐first century. It is also proposed that the system developed by the Gilbreths could be added as a supplement, or even considered as a replacement to certain modern process management systems.

Design/methodology/approach

A qualitative methodology is used and the Gilbreths' system as described in their original works are compared and contrasted with modern process management systems appearing in contemporary literature.

Findings

It is found that most modern process management systems are based on the work of the Gilbreths and other seminal thinkers. However, it is suggested that by paying more attention to the human element, the Gilbreths might have developed a more comprehensive system in comparison with current ones.

Originality/value

This paper attempts to reemphasize the role and importance of Frank and Lillian's work as foundational to modern process management systems and to suggest that more attention needs to be given to the human interface in such systems.

Details

Journal of Management History, vol. 15 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/17511340910943822
ISSN: 1751-1348

Keywords

  • Process management
  • Management history
  • Scientific management

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