Value Creation in New Firms: Evidence from the Biotechnology Industry

Joseph E. Coombs (Rutgers University)
David L. Leeds (Temple University)

New England Journal of Entrepreneurship

ISSN: 2574-8904

Article publication date: 1 March 1998

947
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Abstract

The purpose of this study is to empirically examine those factors that enhance the value of newly public firms. The article presents a model for the market value of a newly public biotechnology firm. Explanatory variables include several intangible indicators of the scientific capabilities of the firm including firm citations, licenses, patents, products in the pipeline, and R&D intensity. Top management team variables are also examined. The results support the conclusion that scientific capabilities significantly impact the value of the firm as viewed by public equity markets.

Citation

Coombs, J.E. and Leeds, D.L. (1998), "Value Creation in New Firms: Evidence from the Biotechnology Industry", New England Journal of Entrepreneurship, Vol. 1 No. 1, pp. 41-52. https://doi.org/10.1108/NEJE-01-01-1998-B005

Publisher

:

Emerald Publishing Limited

Copyright © Published by DigitalCommons@SHU, 1998


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