Dissertations, Theses, and Capstone Projects
Date of Degree
2-2025
Document Type
Dissertation
Degree Name
Ph.D.
Program
Business
Advisor
Karl Lang
Advisor
Dexin Zhou
Committee Members
Lin Peng
Shuting Wang
Subject Categories
Business | Business Administration, Management, and Operations | Finance and Financial Management | Management Information Systems | Technology and Innovation
Keywords
Social connections, Tech giants, Startup financing, Social media, Social finance
Abstract
Technology companies have emerged as key players in driving innovation, economic growth, and reshaping industries in the dynamic landscape of the modern economy. These entities, from innovative startups to established giants, wield the power to revolutionize how we communicate, work, and live. This dissertation delves into the multifaceted significance of technology companies, exploring their impact on financing, innovation, and the stock market. Specifically, it explores three types of technology companies: tech giants, IT startups, and major social media platforms. The first study examines how investments from tech giants influence the funding of IT startups. The results indicate that receiving investments from tech giants has a negative impact on the future funding of IT startups. The study further explores the underlying mechanisms driving this phenomenon. Results suggest that when tech giants invest in IT startups, they dominate new technologies by applying for more patents in relevant fields and crowding out new investors. The second study investigates the impact of social networks on the financing of startups and the investment decisions of venture capitalists. The results demonstrate that startups in areas with high social connections to venture capital raise more funds and experience more emerging startups. The third study investigates the prevalence of meme images on investor social media (i.e., WallStreetBets) and their influence on financial markets. Results show a strong positive association between meme activities and negative earnings surprises, suggesting memes serve as a coping mechanism for adverse market outcomes. Meme posts lead to a surge in virality and engagement, often containing language with amplified fanaticism, frenzy, mutual trust, rebelliousness, and infectiousness. Following negative earnings releases, highly memed stocks tend to receive more social media activity encouraging investors to hold on. By examining the influence of technology companies on the investment landscape, innovation, and stock market, these three studies provide insights into the profound effects these companies have on the present and future evolution of the IT industry, contributing to platform financials and evaluation literature in Information Systems and the burgeoning field of social finance. Understanding the role and impact of technology companies becomes crucial for stakeholders ranging from entrepreneurs, investors, and policymakers to consumers as we navigate the ever-evolving technological frontier.
Recommended Citation
Huang, Linmei, "From IT-Startups to Tech Giants: How Social Connections Influence Investors’ Perspective on Valuations in the Technology Space" (2025). CUNY Academic Works.
https://academicworks.cuny.edu/gc_etds/6137
Included in
Business Administration, Management, and Operations Commons, Finance and Financial Management Commons, Management Information Systems Commons, Technology and Innovation Commons
