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dc.contributor.authorGavious, Ilaniten_US
dc.contributor.authorSchwartz, Dafnaen_US
dc.date.accessioned2012-03-15T14:01:59Z-
dc.date.available2012-03-15T14:01:59Z-
dc.date.issued2008en_US
dc.identifier.citationJournal of Entrepreneurial Finance, JEF 1551-9570 13 2008 2 1-24en_US
dc.identifier.urihttp://hdl.handle.net/10419/55917-
dc.description.abstractWe examine whether and how investors' reliance on financial information is affected by the rate of sales growth of a start-up venture. We find that investors discern between firms by the extent to which their products are adopted by the market. For firms that failed to increase their sales since IPO, investors perceive financial data as not providing relevant or predictive information for investment decision making. In contrast, investors seem to rely heavily on financial information provided by firms presenting a continuous increase in sales. We suggest that investors may perceive firms with a continuous increase (decrease) in sales as those that are (un)able to transfer through the technology adoption lifecycle and make the transition from an early market dominated by a few visionary customers to a mainstream market. Whereas prior studies relate changes in the value-relevance of financial statements to a firm's maturity, as measured on the basis of time (firm age), our findings indicate that the main factor affecting value-relevance is a firm's degree of market penetration.en_US
dc.language.isoengen_US
dc.publisherMontrose, California Academy of Entrepreneurial Finance - AEFen_US
dc.subject.jelG1en_US
dc.subject.jelL26en_US
dc.subject.jelM13en_US
dc.subject.jelM41en_US
dc.subject.ddc330en_US
dc.subject.keywordfinancial statementsen_US
dc.subject.keywordmarket penetrationen_US
dc.subject.keywordstart-upen_US
dc.subject.keywordsales growthen_US
dc.subject.keywordtechnology adoptionen_US
dc.subject.keywordvalue-relevanceen_US
dc.subject.keywordvaluation implicationsen_US
dc.subject.keywordventure capital.en_US
dc.titleThe valuation implications of sales growth in start-up venturesen_US
dc.typeArticleen_US
dc.identifier.ppn663303192en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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