Graduation Year
2017
Date of Submission
4-2017
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Darren Filson
Rights Information
© 2017 Muhammad Farhan Attamimi
Abstract
High-technology platform companies have emerged in large numbers in recent years, seeing great success and high valuations. In this paper, I examine whether platform companies have a significantly greater probability of achieving exceptional market value than non-platform companies. I do not find enough evidence to suggest that platform companies are significantly more likely than non-platform companies to achieve a high-value market capitalization within the 5 years after their initial public offering (IPO), conditional on their market value not being high-value at the time of IPO. However, I do find evidence to support that platform companies are significantly more likely to achieve a high-value market capitalization at the time of their IPO. Therefore, this study suggests that there is a significant positive effect of platform business models on market capitalization, which is incorporated into a company’s market value at the time of IPO, consistent with the efficient market hypothesis.
Recommended Citation
Attamimi, Muhammad Farhan, "Platform Companies: Explaining the Emergence of High-Value Technology Firms" (2017). CMC Senior Theses. 1716.
https://scholarship.claremont.edu/cmc_theses/1716
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
