Public entrants, public equity finance and creative destruction

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dc.contributor.author Brown, James
dc.contributor.author Petersen, Bruce
dc.contributor.author Brown, James
dc.contributor.department Finance
dc.date 2018-02-19T02:25:18.000
dc.date.accessioned 2020-06-30T03:57:59Z
dc.date.available 2020-06-30T03:57:59Z
dc.date.copyright Thu Jan 01 00:00:00 UTC 2009
dc.date.issued 2010-01-01
dc.description.abstract <p>We explore the importance of new public firms and public equity finance for R&D and creative destruction in the U.S. high-tech sector. Over 1900 new public firms enter high-tech manufacturing between 1970 and 2004; they are increasingly R&D intensive and rely extensively on public equity finance in the 1980s and 1990s. We estimate dynamic R&D models and find a strong link between public equity finance and R&D for new entrants, but not established entrants or incumbents. Further, recent cohorts of public entrants have a substantial economic impact: by 2000, recent public entrants account for almost half of high-tech sales and more than half of R&D. Variation in the availability of public equity finance has a marked impact on entrant R&D and the rate at which entrants take market share from incumbents. Our findings identify a key channel through which public equity markets facilitate the process of creative destruction.</p>
dc.description.comments <p>This is an accepted manuscript from an article from <em>Journal of Banking & Finance, </em>2010, 34(5); 1077-1088. DOI: <a href="http://dx.doi.org/10.1016/j.jbankfin.2009.11.005." target="_blank">10.1016/j.jbankfin.2009.11.005.</a> Posted with permission.</p> <h2> </h2>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/finance_pubs/18/
dc.identifier.articleid 1009
dc.identifier.contextkey 11046032
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath finance_pubs/18
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/37327
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/finance_pubs/18/2010_BrownJR___PublicEntrantsPublicEquity.pdf|||Fri Jan 14 21:34:25 UTC 2022
dc.source.uri 10.1016/j.jbankfin.2009.11.005
dc.subject.disciplines Business Intelligence
dc.subject.disciplines Corporate Finance
dc.subject.disciplines Finance and Financial Management
dc.subject.disciplines Management Information Systems
dc.subject.keywords IPO
dc.subject.keywords Stock markets
dc.subject.keywords Finance and growth
dc.subject.keywords Creative destruction
dc.subject.keywords Innovation
dc.subject.keywords R&D
dc.title Public entrants, public equity finance and creative destruction
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication ac67180a-d497-41fc-beaf-75e4f0244de3
relation.isOrgUnitOfPublication e2432527-158f-465f-8301-f4ab4c262f9b
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