Search results

1 – 10 of over 5000
Article
Publication date: 1 January 1992

Raymond A.K. Cox, Robert T. Kleinman and Anandi P. Sahu

Several academic studies have examined the investment performance of initial public offerings (IPOs). Since the underwriters desire to have the offering sell out quickly…

Abstract

Several academic studies have examined the investment performance of initial public offerings (IPOs). Since the underwriters desire to have the offering sell out quickly, they have an incentive to underprice the securities offering. A number of studies have found that new equity issues are generally underpriced and produce positive abnormal short‐term returns. Like IPOs, spin‐offs are issues which are new to the public capital markets. However, unlike IPOs, spin‐offs do not involve an underwriter which determines the offering price of the security. Spin‐offs are also similar to corporate sell‐offs in that a parent company makes a decision to divest a division or subsidiary; however, in a spin‐off the business unit is not sold for cash or securities. Instead, spin‐offs occur when a parent corporation distributes its entire holdings of stock in a subsidiary on a pro‐rata basis to the parent's shareholders. These transactions have the effect of completing the separation of the assets and liabilities of the parent and the subsidiary. Thus, two separate public corporations with the same proportional equity holdings now exist whereas only one firm existed previously.

Details

Competitiveness Review: An International Business Journal, vol. 2 no. 1
Type: Research Article
ISSN: 1059-5422

Article
Publication date: 6 May 2014

Rosa Caiazza

The aim of the paper is to present a theoretical approach and an empirical analysis of factors affecting the spin-off creation, as although research on spin-off has…

976

Abstract

Purpose

The aim of the paper is to present a theoretical approach and an empirical analysis of factors affecting the spin-off creation, as although research on spin-off has increasingly received attention in recent years, few studies have focused on the main factors of the spin-off creation.

Design/methodology/approach

Considering the exploratory nature of our research objectives, the Université Libre de Bruxelles cases were chosen to evidence macro-, meso- and microfactors that affect the university's ability to create a spin-off.

Findings

Many factors that affect the spin-off creation were evidenced.

Originality/value

A multilevel perspective for the spin-off analysis was offered.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 8 no. 2
Type: Research Article
ISSN: 1750-6204

Keywords

Book part
Publication date: 16 November 2009

Igor Prodan, Mateja Drnovsek and Jan Ulijn

Global technological competition has made technology transfer from academia to firms an important public policy issue (Rahm, 1994). Academia and individual academic…

Abstract

Global technological competition has made technology transfer from academia to firms an important public policy issue (Rahm, 1994). Academia and individual academic institutions are a primary source of new knowledge production and innovation (Brennan & McGowan, 2007). It is widely acknowledged that the commercialization of scientific and technological knowledge produced in public funded research institutions, including universities and research centres, into the marketplace have a fundamental role to play in wealth creation, supporting economic growth and technological innovation, and plays a significant role in new venture creation, growth of existing firms, and new job creation (Mansfield, 1991; Harmon et al., 1997; Ndonzuau, Pirnay, & Surlemont, 2002; Siegel, Waldman, Atwater, & Link, 2003b; Steffensen, Rogers, & Speakman, 1999; Walter, Auer, & Ritter, 2006; Perez & Sanchez, 2003). Research by Acs, Audretsch, and Feldman (1992), Jaffe (1989), Mansfield (1991, 1998), and others indicates that technological change in important segments of the economy has been significantly based on knowledge that spin-off from academic research.

Details

New Technology-Based Firms in the New Millennium
Type: Book
ISBN: 978-1-84855-783-3

Book part
Publication date: 18 February 2013

Sven H. De Cleyn, Johan Braet and Magnus Klofsten

Today's academic literature on new technology-based firms is rather growth and success-oriented, despite the fact that many valuable lessons can be learned from failures…

Abstract

Today's academic literature on new technology-based firms is rather growth and success-oriented, despite the fact that many valuable lessons can be learned from failures. This study aims at contributing to our understanding of failure processes by documenting five case studies of spin-offs that originated from European universities. Within the framework of the resource-based view of the firm and social capital theory, the venture's resource base is used as a central element in explaining the failures through the presence or absence of certain resources or by inappropriate application. The analysis mainly illustrated the negative influence of the lack of a champion, poor market development, the absence of market(ing) experience in the venture team and an unbalanced shareholder structure. The relatively small financial base seems rarely to be the main issues in the failure process.

Details

New Technology-Based Firms in the New Millennium
Type: Book
ISBN: 978-1-78190-315-5

Keywords

Book part
Publication date: 16 November 2009

Harmen Jousma and Victor Scholten

Academic knowledge can be put to use in a commercial environment in several ways. One such mechanism to transfer knowledge to the market place is the start of a new…

Abstract

Academic knowledge can be put to use in a commercial environment in several ways. One such mechanism to transfer knowledge to the market place is the start of a new, separate company, termed an academic spin-off company, with the aim to commercially develop and exploit the knowledge generated in the university (Fontes, 2003). In 1999, the Dutch Ministry of Economic affairs published a paper stating that the number of high-tech start-ups in the Netherlands lags behind compared to other EU countries and the United States. Subsequently, initiatives were started to stimulate commercial exploitation of knowledge generated within universities. A specific initiative by the Dutch government in the area of the Life Sciences was the so-called Biopartner programme. This was started in 2000 with the objective to enhance the business climate for start-ups in the Life Sciences and to realize 75 start-ups within 5 years (Dutch Ministry of Economic Affairs, 1999). Actions were directed toward increasing awareness, stimulating starters, establishing facilities like a seed fund and academic incubators, and promoting the commercialization of academic knowledge within universities. A few years later, the Technopartner program and the Valorization Grant were implemented with similar instruments aiming at scientists in universities (Dutch Ministry of Economic Affairs, 2003).

Details

New Technology-Based Firms in the New Millennium
Type: Book
ISBN: 978-1-84855-783-3

Book part
Publication date: 14 December 2017

Angelo Corallo, Fabrizio Errico, Laura Fortunato, Maria Elena Latino and Marta Menegoli

Following the triple helix (TH) model and the way knowledge is transferred into the industry domain, this chapter aims to define features interface that should be…

Abstract

Following the triple helix (TH) model and the way knowledge is transferred into the industry domain, this chapter aims to define features interface that should be implemented in order to facilitate the University–Industry (UI) relationship and thus encourage the spin-off creation.

In order to support this relationship, a new business model configuration of an entrepreneurial ecosystem is proposed, aiming at creating a sustainable environment, where business entities can grow. The field of the Governance of Entrepreneurial Ecosystems is also investigated in order to define a framework for launching, developing, and sustaining a company over time.

This chapter presents a case study developed within the University of Salento (Italy). It capitalizes results from three different research analyses, based on questionnaires and interviews with actors of the spin-off network (professors and researchers, graduating students, admin-tech staff of the Technology Transfer Office, spin-offs’ CEOs/Associates, and R&D managers of external companies) and on results coming from scientific publications and regional/national reports in the innovation context.

A research methodology based on semantic network analysis and sentiment analysis has been applied in order to identify which features an interface should implement in order to facilitate the UI relationship and encourage the spin-off creation.

To support the start-up overcoming the “death valley,” the creation of a link between the strategy used to transfer value to the market and the phase of innovation is proposed inside the business model configuration. Some aspects of a governance model of an entrepreneurial ecosystem were also presented in order to support the business evolution of a single business entity and assuring sustainability over time.

Details

Global Opportunities for Entrepreneurial Growth: Coopetition and Knowledge Dynamics within and across Firms
Type: Book
ISBN: 978-1-78714-502-3

Keywords

Article
Publication date: 8 February 2021

Fernando Almeida

The purpose of this study is to explore the human resource management practices and the associated dimensions of quality of employment in university spin-offs. Through…

Abstract

Purpose

The purpose of this study is to explore the human resource management practices and the associated dimensions of quality of employment in university spin-offs. Through this, it becomes possible to explore and recognize the practices and difficulties placed on the employees of university spin-offs.

Design/methodology/approach

The United Nations Economic Commission for Europe (UNECE) framework to assess the quality of work in the European Union is adopted. It is used a qualitative approach through the development of four case studies at university spin-offs located in Portugal. These case studies relate to four sectors of activity, such as information technology, urban mobility, health and electronics.

Findings

The findings reveal that most of the challenges of quality of work in a spin-off university are common to those in an SME or micro company. Among these factors, the authors highlight the lack of job security, reduced or no social protection and very low income and nonwage pecuniary benefits. Other factors specific to university spin-offs also emerge, such as the numerous opportunities for skills development and training, the potentialities to become an entrepreneur and the high number of working hours that are necessary to face the vibrant market dynamics.

Originality/value

The study aims to contribute, in a theoretical and empirically grounded basis, to the knowledge about the quality of employment in a spin-off university. This work becomes relevant for policymakers to understand in depth the specific challenges faced by employees of a spin-off university.

Details

International Journal of Organizational Analysis, vol. 30 no. 2
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 27 March 2019

Puja Aggarwal and Sonia Garg

The purpose of this paper is to analyse the impact of spin-off announcements on the parent firm’s share prices. Also, it is studied that during which period the…

Abstract

Purpose

The purpose of this paper is to analyse the impact of spin-off announcements on the parent firm’s share prices. Also, it is studied that during which period the announcement impacts the share prices significantly thereby affecting the shareholder wealth.

Design/methodology/approach

A sample of 76 Indian firms has been taken which announced the spin-off of their one or more divisions during 2010–2011 to 2015–2016. The authors have used the event study methodology with an event window period of −35 to +35. Estimation window of 256 (−290, −35) days is considered in the study. S&P BSE 500 is used as a market index.

Findings

The authors found that spin-offs have a significantly positive influence on the share prices of the parent firm. The authors also found that average abnormal return (AAR) of all the 76 companies taken together have been highest on day 0 and the cumulative AAR is highest for day +1. These results are in consonance with what had been concluded by Hite and Owers (1983), Cusatis et al. (1993), Miles and Rosenfeld (1983) and Rosenfeld (1984). All these studies are based on the data derived from the USA. Outcome of this study substantiates the same results when Indian spin-offs are analysed.

Originality/value

This paper provides the first comprehensive analysis of the impact of Indian spin-offs on the shareholder’s wealth.

Details

Managerial Finance, vol. 45 no. 10/11
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 September 2005

Manuel H. Gübeli and David Doloreux

The paper is concerned with spin‐off firms and the process by which a new firm is created and formed from a university. The objectives are to examine characteristics of…

3103

Abstract

Purpose

The paper is concerned with spin‐off firms and the process by which a new firm is created and formed from a university. The objectives are to examine characteristics of firms generated by this process, and the intensity of the spin‐off firms' network activity with the parent organisation and the local environment during this process.

Design/methodology/approach

The findings are based on a case‐study consisting out of three firms spun‐off from a research centre at Linköping University in the area of visualisation and computer graphics. The source data are gathered from semi‐structured interviews. No generalisation should be drawn from this study due to the small number of firms interviewed and the scope of the technological area addressed.

Findings

The results show the importance of collaboration between the university spin‐off, with both the parental organisation and outside organisms, to acquire external competencies in the technological area. The parental organisation plays a pivotal role in the spin‐off process, especially in its early stage where its catalyses the emergence of the business idea by supporting the spin‐off firm with infrastructure and expertise in a specific field of mentorship. However, as the spin‐off evolves, this pre‐incubation service complements yet more support services of municipality and region, which stand to be more important in the technological and business development of the spin‐off.

Originality/value

University spin‐offs have an important place in the innovation process, but their promotion must be part of a wider policy package encouraging networking not only with the host university, but with industry and the public sector as well. For universities and public research organisations, it is advisable to take a more active role in the spin‐off process beyond the pre‐incubation stage.

Details

European Journal of Innovation Management, vol. 8 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 12 August 2014

Andrea Furlan and Roberto Grandinetti

Literature on spin-offs still lacks a thorough understanding of the forces governing spin-off performance. The purpose of this paper is to fill this gap by taking a…

1219

Abstract

Purpose

Literature on spin-offs still lacks a thorough understanding of the forces governing spin-off performance. The purpose of this paper is to fill this gap by taking a network perspective.

Design/methodology/approach

The paper combines the literature on spin-offs with the network approach to new ventures to proposing a model showing how networking in the pre-entry phases affects a spin-off's survival and early growth.

Findings

The intensity and variety of interactions between the future entrepreneur (FE) and other individual actors has a positive impact on spin-off performance in both the incubation and the emergence phases. The degree of overlap between the network of the incubation phase and the network of the emergence phase also reinforces the effects of the intensity and variety of these interactions on performance during the emergence phase. Finally, entrepreneurial innovativeness is an antecedent of spin-off performance in that it requires different degrees of overlap between the network of the incubation phase and the network of the emergence phase.

Research limitations/implications

Being a conceptual paper, the study needs the support of empirical research. For example, samples of spin-offs achieving a high and low performance could be compared in relation to their FE's networking activity.

Originality/value

The paper creates a bridge between the inherited knowledge approach to spin-offs and the network approach to new ventures to provide a framework for explaining spin-off performance.

Details

Journal of Small Business and Enterprise Development, vol. 21 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

1 – 10 of over 5000