Entrepreneurial dimension behind business performance: an empirical investigation

The aim of the research is to highlight the entrepreneurial dimension behind the creation of firms formed around new business ideas in a knowledge-based economy, where value-relevant assets are expected to consist mainly of intangible and non-marketable assets. To this purpose, we focus on companies listed on the Alternative Investment Market (henceforth, AIM). In this work we investigate the post Initial Public Offering (IPO) performance of listed firms, during the period going from 1995 to 2005, with the two-fold aim to highlight the determinants shaping that performance and to underline the role of entrepreneurship. We focus on IPOs because an Initial Public Offering is one of the most notable entrepreneurial settings, being characterized by a high degree of uncertainty. A firm undertaking an IPO and entering the arena of public offerings faces new challenges and pressures, such as the acceptance and monitoring activities from a new variety of stakeholders. Moreover, the AIM is a secondary market dedicated to young and growing companies, thus facing uncertainty and risks due, for example, to the lack of operating history and reputation on the market. The work is articulated on two levels. Firstly, we investigate the post-IPO (Initial Public Offering) performance of listed firms, during the decade going from 1995 to 2005, trying to highlight the determinants shaping that performance and to underline the role of entrepreneurship. Secondly, we emphasize the relation between the determinants of firm performance and the regional environment. Actually, local features may influence and enable the formation of those factors shaping firms’ performance. In this vein, we try to draw some indications both at national and regional level supporting policy makers aiming to foster new firms’ formation and growth.