Factors influencing the choice between founder versus non-founder CEOs for IPO firms

Despite the innate advantage founder CEOs have by virtue of their founding vision, organizational influence, positive image, and ownership stakes to lead their firms at their initial public offering (IPO), extant empirical evidence indicates that between a third to half of IPO firms go public with n...

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Bibliographic Details
Published in:Journal of business venturing 2008, Vol.23 (1), p.21-45
Main Authors: Jain, Bharat A., Tabak, Filiz
Format: Article
Language:English
Subjects:
Chief executive officers
Equity financing
Founder CEOs
Governance structure
Impact analysis
Initial public offerings
Studies
Venture capital involvement
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Summary:Despite the innate advantage founder CEOs have by virtue of their founding vision, organizational influence, positive image, and ownership stakes to lead their firms at their initial public offering (IPO), extant empirical evidence indicates that between a third to half of IPO firms go public with non-founder CEOs at the helm. Relatively little however, is known regarding factors that influence the choice of founder versus non-founder CEO for firms issuing IPOs. This study examines the impact of factors such as founder characteristics, size of founding team, governance structure, ownership structure, top management team independence, venture capitalist influence, and the demand for equity financing on the probability of founder CEO at IPO.
ISSN:0883-9026
1873-2003
DOI:10.1016/j.jbusvent.2005.11.001