Center News, Research
The Weinberg Center congratulates He Gao, Assistant Professor, Business Administration, on her latest publication in the Journal of Business Venturing Insights.
Her research and latest paper sheds light on how imagery-rich language in IPO prospectuses influences investor perception—and what that means for firm performance.
For new ventures, an IPO is a defining moment. To attract investors, firms often craft their messaging to appear as positive and persuasive as possible. But does this stylistic language reflect true potential—or just temporary hype?
Prof. Gao’s study examines the effects of linguistic strategies in IPO filings on both:
Key Findings:
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Imagery language generates greater investor enthusiasm, leading to higher IPO underpricing
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However, it correlates with lower post-IPO growth, suggesting that early excitement may not signal lasting success
The study highlights the importance of critically evaluating rhetoric vs. reality in IPO materials—and offers new insights into how language shapes investment outcomes.
About Gao
Prof. Gao holds a Ph.D. in Strategic Management from Arizona State University. Her research focuses on competitive dynamics, strategic leadership, and the use of language by top executives to influence key stakeholders and rivals.
Her work has been published in leading journals, including:
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Academy of Management Review
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Journal of Management
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Journal of Applied Psychology
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Academy of Management Best Paper Proceedings
Before joining the University of Delaware, she served on the faculty at Michigan State University.
Center News, Homepage News
Warren Buffett Begins Succession Process at Berkshire
On Saturday, May 3, 2025, Lawrence Cunningham, Director of the Weinberg Center, was in Omaha to witness Warren Buffett’s historic announcement of his retirement as CEO of Berkshire Hathaway.
Within two hours of the announcement, major media outlets including Morningstar and MarketWatch published in-depth coverage—featuring insights from Cunningham, whose commentary can be found in this thoughtful piece.
Cunningham, a longtime Buffett collaborator and author of numerous works on Berkshire—beginning in 1995 with The Essays of Warren Buffett—was prominently quoted across the media landscape. A curated sampling of this coverage is available on the WCCG website Media Coverage tab, along with a clip from his interview on CNN.
Center News, Homepage News
Bridging Board Gaps—Then and Now
In 2011, Bridging Board Gaps, a landmark study from Columbia Business School and the University of Delaware’s Weinberg Center for Corporate Governance, examined the difference between ideal and actual corporate board practices. Nearly 15 years later, where do things stand?
Some gaps have closed—boards today benefit from improved information flow, increased engagement with outside advisors, and more robust self-renewal practices. But critical challenges remain, including aligning boards with long-term shareholder value, fostering a culture of ethical engagement, and ensuring constructive debate.
Weinberg Center Director Lawrence Cunningham explores these shifts in the latest edition of NACD Directorship, revisiting the original study and outlining what today’s directors—both seated and aspiring—can do to drive more effective corporate governance.
📖 Read more here [DM us for a pdf version.]
Center News
Delaware lawmakers approve bill to slow lawsuits; Weinberg Center panel featured in news coverage
…Among U.S. start-ups last year, 89% were incorporated under Delaware law, Columbia law professor Dorothy Lund said Feb. 24, at a conference in New York sponsored by the University of Delaware’s corporate governance program. Lund said the lawsuit restrictions in Senate Bill 21 are mostly of interest to a small group of companies whose bosses are also controlling shareholders, like Musk and Zuckerberg are. “I don’t think this is the story of a huge threat,” Lund said. “Yet we have a big reaction.”
At its roots, “corporate law is simple: ‘Though shalt not steal,’” said Sean Griffith, a law professor at Fordham University. He compared past Delaware cases to “morality plays” in which judges reviewed whether boards had done enough to ensure shareholders’ interests were protected. But ruling against Musk’s billions even after shareholders endorsed the payout may be “logically compelling but politically untenable,” Griffith added.
New York University law professor Edward Rock, a longtime scholar of the Delaware court, suggested the Senate bill was a reaction to a recent “vibe” that Delaware’s reputation for “sophisticated courts with business acumen” has suffered. Rich company founders find it “outrageous to be told they can’t take big money” without meeting extra court-ordered conditions. Rock worried about the “rushed” attempt to fix these perceptions by restricting judges’ powers through legal limits. The more law is spelled out on the books, not left to veteran Chancery judges’ discretion, the easier for competing states to copy, he added, removing Delaware’s competitive advantage.
Gov. Meyer, after consulting corporate lawyers, told residents the law must be passed to preserve the state’s ability to continue without a retail sales tax. He warned against opponents’ “misinformation.” Meyer’s stance marked a departure from state officials’ usual reticence about corporate law. “The governor faced very intense pressure,” said Lawrence Cunningham, head of the University of Delaware’s corporate governance center, at the New York event. “He did something most governors haven’t: He exercised leadership.”
[Read Full Article – View PDF] | Philadelphia Inquirer, The (PA) | Joseph N. DiStefano (Staff Writer)
Center News, Homepage News
The winners of the Weinberg Center student writing competition were recognized by the University in ‘For the Record’.
The John L. Weinberg Center for Corporate Governance at UD hosted its fourth annual event, “From Boom to Backlash: Guiding Directors in a Shifting ESG Landscape,” on Feb. 13, 2025.
Nearly 100 corporate leaders, legal experts and students gathered to discuss the evolving challenges and responsibilities of directors in the ever-changing environmental, social and governance (ESG) landscape. As part of the event, the center hosted a student writing competition, inviting participants to submit papers summarizing key discussions, highlighting major themes and proposing open questions for future debate.
The competition winners were UD Lerner undergraduate students Lucas Troutner, Class of 2027, a finance major; Brooke Burkhardt, Class of 2026, a finance major; and Anna Goldkamp, Class of 2027, a finance and financial planning double major. Each student received a $500 cash prize.
Read the full story here.
