文档介绍：Jade S. DeKinder & Ajay K. Kohli
Flow Signals: How Patterns over
Time Affect the Acceptance of
Start-Up Firms
This study introduces the concept of flow signals—patterns of a firm’s attributes over time—and contrasts them with
point signals discussed in the literature to date. Three properties of flow signals are delineated: displacement,
propensity, and reversals. The authors illustrate these properties using a start-up’s research-and-development
(R&D) spending and voluntary disclosure flows. The authors argue that the flow signal properties affect prospective
customers’ perceptions of a start-up’s current and future product quality, thus influencing their purchase likelihood
and, ultimately, the start-up’s growth in sales. The findings, obtained from panel prised of . venture-
backed firms that went public in 2001–2005, suggest that sales growth is positively affected by displacement and
propensity of both R&D spending and voluntary disclosures and negatively affected by R&D spending reversals.
Furthermore, these effects are stronger for the relatively younger start-ups.
Keywords: market signals, start-up firms, flow signals, information asymmetry, sales growth
tart-ups are an important engine of growth for the tomers’ lack of experience with the start-up and the paucity
. economy (Timmons 1999). Given the influence of prior customers that may serve as references (Aldrich
Sof start-ups in creating new jobs and stimulating the and Fiol 1994). Second, the start-up must convince prospec-
economy, extensive resources have been devoted to culti- tive customers that it will offer quality products in the
vate their ess (., Huyghebaert et al. 2000). For exam- future. A start-up’s future product quality is of particular
ple, 39 of the 50 states in the United States provide tax relevance to customers who prefer to make repeat purchases
benefits to encourage investments in start-ups. Despite this from the same suppliers (see Lemon, White, an