Stock Market Reactions to Customer and Competitor Orientations: The Case of Initial Public Offerings

References

• Accord Networks Form F-1 registration statement. (2000) . Accord Networks, Atlanta. http://www.sec.gov/Archives/edgar/data/1116152/000093176300001502/0000931763-00-001502-0001.txtGoogle Scholar
• Aggarwal RK, Krigman L, Womacka KL. Strategic IPO underpricing, information momentum, and lockup expiration selling. J. Financial Econom. (2002) 66(1):105–137Crossref, Google Scholar
• Andrews R, Ansari A, Currim I. Hierarchical Bayes versus finite mixture conjoint analysis models: A comparison of fit, prediction, and partworth recovery. J. Marketing Res. (2002) 39(1):87–98Crossref, Google Scholar
• ArrowPoint Communications Inc. Prospectus. (2000) . ArrowPoint Communications, Westford, MA. http://www.sec.gov/Archives/edgar/data/1039198/0000950135-00-001917.txtGoogle Scholar
• Armstrong JS, Collopy F. Competitor orientation: Effects of objectives and information on managerial decisions and profitability. J. Marketing Res. (1996) 33(2):188–199Crossref, Google Scholar
• August Technology Corporation Form S-1 registration statement. (2000) . August Technology, Bloomington, MN. http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1128584Google Scholar
• Baker M, Wurgler J. Investor sentiment and the cross-section of stock returns. J. Finance (2006) 61(4):1645–1680Crossref, Google Scholar
• Baum JAC, Rowley TJ. Companion to Organizations: An Introduction (2002) (Blackwell, Oxford, UK) Google Scholar
• Beattie V. Business Reporting: The Inevitable Change? (1999) (Institute of Chartered Accountants of Scotland, Edinburgh, UK) Google Scholar
• Beatty RP, Ritter JR. Investment banking, reputation, and the underpricing of initial public offerings. J. Financial Econom. (1986) 15(1–2):213–232Crossref, Google Scholar
• Benveniste LM, Spindt PA. How investment bankers determine the offer price and allocation of new issues. J. Financial Econom. (1989) 24(2):343–361Crossref, Google Scholar
• Beyer A, Cohen DA, Lys TZ, Walther BR. The financial reporting environment: Review of the recent literature. J. Accounting Econom. (2010) 50(2–3):296–343Crossref, Google Scholar
• Bhabra HS, Pettway RH. IPO prospectus information and subsequent performance. Financial Rev. (2003) 38(3):369–397Crossref, Google Scholar
• Black BS, Gilson RJ. Venture capital and the structure of capital markets: Banks versus stock markets. J. Financial Econom. (1998) 47(3):243–277Crossref, Google Scholar
• Bring J. How to standardize regression coefficients. Amer. Statistician (1994) 48(3):209–213Google Scholar
• Bukh PN, Nielsen C, Gormsen P, Mouritsen J. Disclosure of information on intellectual capital in Danish IPO prospectuses. Accounting, Auditing Accountability J. (2005) 18(6):713–732Crossref, Google Scholar
• Cabot Microelectronics Corporation Form S-1 registration statement. (2000) (Cabot Microelectronics, Aurora, IL) . http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1126022Google Scholar
• Cai H, Wang JTY. Overcommunication in strategic information transmission games. Games Econom. Behav. (2006) 56(1):7–36Crossref, Google Scholar
• Cano CR, Carrillat FA, Jaramillo F. A meta-analysis of the relationship between market orientation and business performance: Evidence from five continents. Internat. J. Res. Marketing (2004) 21(2):179–200Crossref, Google Scholar
• Carayannis EG, Juneau TL. Idea Makers and Idea Brokers in High-Technology Entrepreneurship: Fee vs. Equity Compensation for Intellectual Venture Capitalists (2003) (Praeger Publishers, Westport, CT) Google Scholar
• Carlsson F, Frykblom P, Lagerkvist CJ. Using cheap talk as a test of validity in choice experiments. Econom. Lett. (2005) 89(2):147–152Crossref, Google Scholar
• Carter R, Manaster S. Initial public offerings and underwriter reputation. J. Finance (1990) 45(4):1045–1067Crossref, Google Scholar
• Carter RB, Dark FH, Singh AK. Underwriter reputation, initial returns, and the long-run performance of IPO stocks. J. Finance (1998) 53(1):285–311Crossref, Google Scholar
• Chan K, Ikenberry DL, Lee I, Wang Y. Share repurchases as a potential tool to mislead investors. J. Corporate Finance (2010) 16(2):137–158Crossref, Google Scholar
• Chemmanur TJ, Yan A. Product market advertising and new equity issues. J. Financial Econom. (2009) 92(1):40–65Crossref, Google Scholar
• Cho TS, Hambrick DC. Attention as the mediator between top management team characteristics and strategic change: The case of airline deregulation. Organ. Sci. (2006) 17(4):453–469Link, Google Scholar
• Choi SJ. Do the merits matter less after the Private Securities Litigation Reform Act? (2007) 23(3):598–626Google Scholar
• Cliff MT, Denis DJ. Do initial public offering firms purchase analyst coverage with underpricing? J. Finance (2004) 59(6):2871–2901Crossref, Google Scholar
• Cornerstone Research Securities class action filings: 2010 year in review. (2011) . Report, Cornerstone Research, Boston. http://securities.stanford.edu/clearinghouse_research/2010_YIR/Cornerstone_Research_Filings_2010_YIR.pdfGoogle Scholar
• Crawford VP, Sobel J. Strategic information transmission. Econometrica (1982) 50(6):1431–1451Crossref, Google Scholar
• Croson R, Boles T, Murnighan JK. Cheap talk in bargaining experiments: Lying and threats in ultimatum games. J. Econom. Behav. Organ. (2003) 51(2):143–159Crossref, Google Scholar
• Daily CM, Certo T, Dalton DR, Roengpitya R. IPO underpricing: A meta-analysis and research synthesis. Entrepreneurship: Theory Practice (2003) 27(3):271–296Crossref, Google Scholar
• Daines R, Klausner M. Do IPO charters maximize firm value? Antitakeover protection in IPOs. J. Law, Econom., Organ. (2001) 17(1):83–120Crossref, Google Scholar
• D'Aveni RA, Macmillan IC. Crisis and the content of managerial communications: A study of the focus of attention of top managers in surviving and failing firms. Admin. Sci. Quart. (1990) 35(4):634–657Crossref, Google Scholar
• Day GS, Wensley R. Assessing advantage: A framework for diagnosing competitive superiority. J. Marketing (1988) 52(2):1–20Crossref, Google Scholar
• DeKinder JS, Kohli AK. Flow signals: How patterns over time affect the acceptance of start-up firms. J. Marketing (2008) 72(5):84–97Crossref, Google Scholar
• Demers E, Lewellen K. The marketing role of IPOs: Evidence from internet stocks. J. Financial Econom. (2003) 68(3):413–437Crossref, Google Scholar
• DiMaggio PJ, Powell WW. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. Amer. Sociol. Rev. (1983) 48(2):147–160Crossref, Google Scholar
• Dittmar AK. Why do firms repurchase stock? J. Bus. (2000) 73(3):331–355Crossref, Google Scholar
• Drake PD, Vetsuypens MR. IPO underpricing and insurance against legal liability. Financial Management (1993) 22(1):64–73Crossref, Google Scholar
• Ebbes P, Wedel M, Böckenholt U, Steerneman T. Solving and testing for regressor-error (in)dependence when no instrumental variables are available: With new evidence for the effect of education on income. Quant. Marketing Econom. (2005) 3(4):365–392Crossref, Google Scholar
• Eliashberg J, Robertson TS. New product preannouncing behavior: A market signaling study. J. Marketing Res. (1988) 25(3):282–292Crossref, Google Scholar
• Eon Labs Prospectus. (2002) (Eon Labs, Wilson, NC) . http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1773897Google Scholar
• Evergreen Solar Form S-1 registration statement. (2000) (Evergreen Solar, Waltham, MA) . http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1235195Google Scholar
• Farrell J. Talk is cheap. Amer. Econom. Rev. (1995) 85(2):186–190Google Scholar
• Farrell J, Rabin M. Cheap talk. J. Econom. Perspect. (1996) 10(3):103–118Crossref, Google Scholar
• Fiol CM. Corporate communications: Comparing executives' private and public statements. Acad. Management J. (1995) 38(2):522–536Crossref, Google Scholar
• Fried VH, Hisrich RD. The venture capitalist: A relationship investor. Calif. Management Rev. (1995) 37(2):101–113Crossref, Google Scholar
• Gigler F. Self-enforcing voluntary disclosures. J. Accounting Res. (1994) 32(2):224–240Crossref, Google Scholar
• Gillan SL, Starks LT. The evolution of shareholder activism in the United States. J. Appl. Corporate Finance (2007) 19(1):55–73Crossref, Google Scholar
• Grewal R, Dharwadkar R. The role of the institutional environment in marketing channels. J. Marketing (2002) 66(3):82–97Crossref, Google Scholar
• Grewal R, Chandrashekaran M, Dwyer FR. Navigating local environments with global strategies: A contingency model of multinational subsidiary performance. Marketing Sci. (2008) 27(5):886–902Link, Google Scholar
• Grewal R, Chandrashekaran M, Johnson J, Mallapragada G. Environments, unobserved heterogeneity, and the effect of market orientation on outcomes for high-tech firms. J. Acad. Marketing Sci. (2011) . ePub ahead of print December 13Google Scholar
• Gulati R, Higgins MC. Which ties matter when? The contingent effects of interorganizational partnerships on IPO success. Strategic Management J. (2003) 24(2):127–144Crossref, Google Scholar
• Habib MA, Ljungqvist AP. Underpricing and entrepreneurial wealth losses in IPOs: Theory and evidence. Rev. Financial Stud. (2001) 14(2):433–458Crossref, Google Scholar
• Hambrick DC, Abrahamson E. Assessing managerial discretion across industries: A multimethod approach. Acad. Management J. (1995) 38(5):1427–1441Crossref, Google Scholar
• Hanley KW. The underpricing of initial public offerings and the partial adjustment phenomenon. J. Financial Econom. (1993) 34(2):231–250Crossref, Google Scholar
• Hanley KW, Hoberg G. The information content of IPO prospectuses. Rev. Financial Stud. (2010) 23(7):2821–2864Crossref, Google Scholar
• Hauser J, Tellis GJ, Griffin A. Research on innovation: A review and agenda for Marketing Science. Marketing Sci. (2006) 25(6):687–717Link, Google Scholar
• Jaworski BJ, Kohli AK. Market orientation: Antecedents and consequences. J. Marketing (1993) 57(3):53–70Crossref, Google Scholar
• Kennedy DB, Sivakumar R, Vetzal KR. The implications of IPO underpricing for the firm and insiders: Tests of asymmetric information theories. J. Empirical Finance (2006) 13(1):49–78Crossref, Google Scholar
• Kim JY. Cheap talk and reputation in repeated pretrial negotiation. RAND J. Econom. (1996) 27(4):787–802Crossref, Google Scholar
• Kirca AH, Jayachandran S, Bearden WO. Market orientation: A meta-analytic review and assessment of its antecedents and impact on performance. J. Marketing (2005) 69(2):24–41Crossref, Google Scholar
• Kirmani A, Rao AR. No pain, no gain: A critical review of the literature on signaling unobservable product quality. J. Marketing (2000) 64(2):66–79Crossref, Google Scholar
• Kohli AK, Jaworski BJ. Market orientation: The construct, research propositions, and managerial implications. J. Marketing (1990) 54(2):1–18Crossref, Google Scholar
• Krigman L, Shaw WH, Womack KL. Why do firms switch underwriters? J. Financial Econom. (2001) 60(2–3):245–284Crossref, Google Scholar
• Kumar V, Jones E, Venkatesan R, Leone RP. Is market orientation a source of sustainable competitive advantage or simply the cost of competing? J. Marketing (2011) 75(1):16–30Crossref, Google Scholar
• Lacker JM, Weinberg JA. Optimal contracts under costly state falsification. J. Political Econom. (1989) 97(6):1345–1363Crossref, Google Scholar
• Lee RP, Grewal R. Strategic responses to new technologies and their impact on firm performance. J. Marketing (2004) 68(4):157–171Crossref, Google Scholar
• Lehnert WG, Sundheim B. A performance evaluation of text analysis technologies. AI Magazine (1991) 12(3):81–94Google Scholar
• Leland HE, Pyle DH. Information asymmetries, financial structure and financial intermediation. J. Finance (1977) 32(2):371–387Crossref, Google Scholar
• Ljungqvist AP, Eckbo E. IPO underpricing. Handbook of Corporate Finance: Empirical Corporate Finance (2007) (North-Holland, Amsterdam) 375–422Crossref, Google Scholar
• Loughran T, Ritter JR. Why has IPO underpricing increased over time? Financial Management (2004) 33(3):5–37Google Scholar
• Lowry M, Shu S. Litigation risk and IPO underpricing. J. Financial Econom. (2002) 65(3):309–335Crossref, Google Scholar
• Lowry M, Officer MS, Schwert GW. The variability of IPO initial returns. J. Finance (2010) 65(2):425–465Crossref, Google Scholar
• Luo X. When marketing strategy first meets Wall Street: Marketing spendings and firms' initial public offerings (IPOs). J. Marketing (2008) 72(5):98–109Crossref, Google Scholar
• Lusk JL. Effects of cheap talk on consumer willingness-to-pay for golden rice. Amer. J. Agricultural Econom. (2003) 85(4):840–856Crossref, Google Scholar
• Manly BFJ. Exponential data transformations. Statistician (1976) 25(1):37–42Crossref, Google Scholar
• Martens ML, Jennings JE, Jennings PD. Do the stories they tell get them the money they need? The role of entrepreneurial narratives in resource acquisition. Acad. Management J. (2007) 50(5):1107–1132Crossref, Google Scholar
• Mason CH, Perreault WD. Collinearity, power, and interpretation of multiple regression analysis. J. Marketing Res. (1991) 28(3):268–280Crossref, Google Scholar
• Mazzola P, Ravasi D, Gabbioneta C. How to build reputation in financial markets. Long-Range Planning (2006) 39(4):385–407Crossref, Google Scholar
• Moenaert RK, Souder WE. Context and antecedents of information utility at the R&D/marketing interface. Management Sci. (1996) 42(11):1592–1610Link, Google Scholar
• Moorman C. Organizational market information processes: Cultural antecedents and new product outcomes. J. Marketing Res. (1995) 32(3):318–335Crossref, Google Scholar
• Narver JC, Slater SF. The effect of a market orientation on business profitability. J. Marketing (1990) 54(4):20–35Crossref, Google Scholar
• Newman P, Sansing R. Disclosure policies with multiple users. J. Accounting Res. (1993) 31(1):92–112Crossref, Google Scholar
• Noble CH, Sinha RK, Kumar A. Market orientation and alternative strategic orientations: A longitudinal assessment of performance implications. J. Marketing (2002) 66(4):25–39Crossref, Google Scholar
• NYSE Euronext NYSE Euronext preliminary summary of 2007 listings and IPO activity. (2007) . News release (December 28), NYSE Euronext, New York. http://www.nyse.com/press/1198840019865.htmlGoogle Scholar
• Osborn RN, Baughn CC. Forms of interorganizational governance for multinational alliances. Acad. Management J. (1990) 33(3):503–519Crossref, Google Scholar
• Pfeffer J, Salancik GR. The External Control of Organizations (1978) (Harper & Row, New York) Google Scholar
• Pollock TG, Gulati R. Standing out from the crowd: The visibility-enhancing effects of IPO-related signals on alliance formation by entrepreneurial firms. Strategic Organ. (2007) 5(4):339–372Crossref, Google Scholar
• Pollock TG, Rindova VP. Media legitimation effects in the market for initial public offerings. Acad. Management J. (2003) 46(5):631–642Crossref, Google Scholar
• Popping R. Computer-Assisted Text Analysis (2000) (Sage Publications, Thousand Oaks, CA) Crossref, Google Scholar
• Rao AR, Qu L, Ruekert RW. Signaling unobservable product quality through a brand ally. J. Marketing Res. (1999) 36(2):258–268Crossref, Google Scholar
• Reese WA. IPO underpricing, trading volume, and investor interest. (1998) . Working paper, Tulane University, New OrleansCrossref, Google Scholar
• Ritter JR. Initial public offerings. Contemp. Finance Digest (1998) 2(1):5–30Google Scholar
• Ritter JR. Equilibrium in the IPO market. Annual Rev. Financial Econom. (2011) 3(1):347–374Crossref, Google Scholar
• Ritter JR, Welch I. A review of IPO activity, pricing, and allocations. J. Finance (2002) 57(4):1795–1828Crossref, Google Scholar
• Rossi PE, Allenby GM. Bayesian statistics and marketing. Marketing Sci. (2003) 22(3):304–328Link, Google Scholar
• Scott WR, Meyer JW, Meyer JW, Scott WR. The organization of societal sectors. Organizational Environments: Ritual and Rationality (1983) (Sage, Beverly Hills, CA) 129–153Google Scholar
• Segarra A, Callejón M. New firms' survival and market turbulence: New evidence from Spain. Rev. Indust. Organ. (2002) 20(1):1–14Crossref, Google Scholar
• Silva A, Nayga RM, Campbell BL, Park JL. Can perceived task complexity influence cheap talk's effectiveness in reducing hypothetical bias in stated choice studies? Appl. Econom. Lett. (2012) 19(17):1711–1714Crossref, Google Scholar
• Slater SF, Narver JC. Does competitive environment moderate the market orientation-performance relationship? J. Marketing (1994) 58(1):46–55Crossref, Google Scholar
• Slater SF, Narver JC. Market orientation and the learning organization. J. Marketing (1995) 59(3):63–74Crossref, Google Scholar
• Sobel J. A theory of credibility. Rev. Econom. Stud. (1985) 52(4):557–573Crossref, Google Scholar
• Sorescu AB, Chandy RK, Prabhu JC. Why some acquisitions do better than others: Product capital as a driver of long-term stock returns. J. Marketing Res. (2007) 44(1):57–72Crossref, Google Scholar
• Spehr RA, Simone JD, Calica AJ. Securities Act Section 11: A primer and update of recent trends. Contemp. Legal Note Ser. (2006) 49(January). http://www.wlf.org/upload/0106CLNSPehr.pdfGoogle Scholar
• Spence MA. Job market signaling. Quart. J. Econom. (1973) 87(3):355–374Crossref, Google Scholar
• Srinivasan R, Lilien GL, Rangaswamy A. Technological opportunism and radical technology adoption: An application to e-business. J. Marketing (2002) 66(3):47–60Crossref, Google Scholar
• Staikouras C, Tsatsanis D. The impact of media exposure and market psychology on the underpricing of initial public offerings: The UK case. (2004) . Working paper, Cass Business School, LondonCrossref, Google Scholar
• Stinchcombe AL. Social Structure and Organizations (1965) (Rand McNally, Chicago) Google Scholar
• Stocken PC. Credibility of voluntary disclosure. RAND J. Econom. (2000) 31(2):359–374Crossref, Google Scholar
• Terleckyj NE. What do R&D numbers tell us about technological change? Amer. Econom. Rev. (1980) 70(2):55–61Google Scholar
• 3-Dimensional Pharmaceuticals Amendment 6 to Form S-1 registration statement. (2000) (3-Dimensional Pharmaceuticals, Exton, PA) . http://www.sec.gov/Archives/edgar/data/914201/000094018000000928/0000940180-00-000928-0001.txtGoogle Scholar
• Vorhies DW, Morgan NA. Benchmarking marketing capabilities for sustainable competitive advantage. J. Marketing (2005) 69(1):80–94Crossref, Google Scholar
• Weiss AM, Heide JB. The nature of organizational search in high technology markets. J. Marketing Res. (1993) 30(2):220–233Crossref, Google Scholar
• Welbourne TM, Cyr LA. The human resource executive effect in initial public offering firms. Acad. Management J. (1999) 42(6):616–629Crossref, Google Scholar
• Wooldridge J. Introductory Econometrics: A Modern Approach (2009) 4th ed.(South Western Cengage Learning, Mason, OH) Google Scholar
• Xiong G, Bharadwaj S. Social capital of young technology firms and their IPO values: The complementary role of relevant absorptive capacity. J. Marketing (2011) 75(6):87–104Crossref, Google Scholar
• Yadav MS, Prabhu JC, Chandy RK. Managing the future: CEO attention and innovation outcomes. J. Marketing (2007) 71(4):84–101Crossref, Google Scholar
• Yong O. A review of IPO research in Asia: What's next? Pacific Basin Finance J. (2007) 15(3):253–275Crossref, Google Scholar
• Zhang J, Wedel M, Pieters R. Sales effects of attention to feature advertisements: A Bayesian mediation analysis. J. Marketing Res. (2009) 46(5):669–681Crossref, Google Scholar