How to Mitigate the Effects of Insider Selling

A new Journal of Marketing study explains two ways to maximize IPO value: talk up your company’s innovation potential in the prospectus and reveal future innovation plans.

Read the full Journal of Marketing article here: https://doi.org/10.1177/00222429221134489

Read an in-depth recap of this research: https://www.ama.org/2022/11/15/increasing-ipo-performance-by-revealing-innovation-potential-and-outlining-future-plans-how-firms-can-mitigate-the-negative-effect-of-insider-selling/

Reference: Zixia Cao, Reo Song, Alina Sorescu, and Ansley Chua, “Innovation Potential, Insider Sales, and IPO Performance: How Firms Can Mitigate the Negative Effect of Insider Selling,” Journal of Marketing, doi:10.1177/00222429221134489

Producer: Marissa Lambert

Narrator: Saira Salyani

Acknowledgments: Sushma Kambagowni

Topics: IPOs, startups, innovation, insider sales, preannounements, patents, stock market, valuation

The JM Buzz is a production of the Journal of Marketing and is produced by University FM.