The Effect of Product Innovation on IPO Performance: The Moderating Role of Insider Selling

摘要

Our research investigates three important issues related to the effect of innovation on IPO first day returns and the moderating role of insider selling: (1) the impact of product innovation (current and future new products) on insider selling, (2) the interaction effect between product innovation and insider selling on IPO first day returns, (3) the relationship between insider selling and future innovation outcome. Specifically, we examine how the quantity and quality of innovation (as measured by the number of new products, new products' innovativeness, and the proportion of technological breakthroughs) are associated with insider selling.