MTEI Seminar by Prof. Kenneth Young, Purdue University
Event details
| Date | 18.02.2015 |
| Hour | 10:45 › 12:00 |
| Speaker | Prof. Kenneth Young, Purdue University |
| Location | |
| Category | Conferences - Seminars |
"Science and the Mobility Discount: Evidence from Initial Public Offerings"
Abstract
For firms to benefit from scientific research, it is often important for key scientists to remain with the firm. We develop theory and evidence of a “mobility discount” wherein markets value scientific research conducted within the firm, but also discount firm value for the potential of losing key scientists. In a sample of high-tech IPOs, we show that markets discount firm value by up to 12% when firms rely on key scientists. We also show that the mobility discount is greater in states that prohibit the enforcement of non-compete agreements and when science is more important to the firm.
Keywords
Science, mobility discount, employee mobility, non-competes, initial public offering
Abstract
For firms to benefit from scientific research, it is often important for key scientists to remain with the firm. We develop theory and evidence of a “mobility discount” wherein markets value scientific research conducted within the firm, but also discount firm value for the potential of losing key scientists. In a sample of high-tech IPOs, we show that markets discount firm value by up to 12% when firms rely on key scientists. We also show that the mobility discount is greater in states that prohibit the enforcement of non-compete agreements and when science is more important to the firm.
Keywords
Science, mobility discount, employee mobility, non-competes, initial public offering
Practical information
- General public
- Free