DARROUGH, MASAKO; RANGAN, SRINIVASAN - In: Journal of Accounting Research 43 (2005) 1, pp. 1-33
In this article we examine whether insider share selling in an initial public offering (IPO) influences R&D expenditures. Insiders (managers and venture capitalists) who sell their pre-offering shareholdings might try to increase the IPO offer price (1) by overinvesting in R&D to signal the...
