Fuqua Professor Christine Moorman and colleagues find an important connection between innovative businesses and risk-tolerant investors
On average, 7 in 10 private firms that decide to go public experience an innovation slump following their Initial Public Offering (IPO).
This phenomenon has been widely studied, with a key explanation being that firms succumb to stock market pressures that seemingly discourage risky, long-term investments.
Christine Moorman, the T. Austin Finch, Sr. Professor of Business Administration at Duke University’s Fuqua School of Business, was interested to find out if there were commonalities among the 30% of firms that do meet or outperform their pre-IPO innovation performance.
[This article has been reproduced with permission from Duke University's Fuqua School of Business. This piece originally appeared on Duke Fuqua Insights]