Science-based legitimacy: the value relevance of interacting signals for young firms

摘要: This paper contributes to the literature on legitimization of science-based firms, by investigating whether affiliation with prestigious universities affect their valuation at IPO, and how it interacts endorsements underwriters venture capitalists. Based a sample 254 European biotech we find that scientific is valued investors, this particularly true when company tied academic entity. We confirm previous results relevance certification provided top-tier However, taking into considerations interactions, signal capitalists shades, as moderated its overlapping reputable universities. argue provide strongest role due positive selection, while bring substantive business benefits. Venture mix these two roles.