Crisis Conditions and Performance of IPO Firms: Impact of Founder-CEOs and Foreign Listings

Tupper, Christina

doi:10.9774/gleaf.3709.2016.ja.00005

Cited by 4 publications

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“…Investors may be motivated to diversify internationally during a crisis (Vermeulen, 2013). However, they may shy away from both domestic and foreign IPO firms (Tupper, 2016) given their perceived riskiness in a turbulent environment.…”

Section: Discussionmentioning

confidence: 99%

Capital market liability of foreignness of IPO firms

Tupper

Guldiken

Benischke

2018

Journal of World Business

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Section: Discussionmentioning

confidence: 99%

Capital market liability of foreignness of IPO firms

Tupper

Guldiken

Benischke

2018

Journal of World Business

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“…The uncertainty facing foreign IPO firms is especially high because of liabilities of foreignness. One such liability is that foreign firms' narratives typically are not widely known (Tupper, 2016) in the markets where they are traded. In this sense, a founder's carefully constructed vision and strategy can "justify the existence of their company" (O'Connor, 2002, p. 36), reduce foreignness and help attract investors.…”

Section: Founder Ceosmentioning

confidence: 99%

Effects of founder CEO duality and board size on foreign IPOs’ survival in US markets

Lee

2022

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Purpose This study aims to investigate how three critical governance decisions by foreign firms impacted their survivability post-initial public offerings (IPO): the choice of CEO (founder vs non-founder); the power the founder CEO wields relative to the board in terms of CEO duality; and board size. Design/methodology/approach This study uses data from 86 foreign firms that completed IPOs in the US market between 2000 and 2008 and adopts a Cox proportional hazards model to examine how the founder, founder CEO duality and board size influence foreign firm delisting post-IPO. Findings A founder CEO or a founder CEO with duality (i.e. when a founder CEO is also chair of the board of directors) does not support a foreign firm’s survival post-IPO. Expectedly, board size has a negative impact on post-IPO firm survivability; however, founder CEO duality positively moderates this negative relationship. Therefore, founder CEO duality plays a positive indirect role in the context of post-IPO firms with large boards. Originality/value First, while the benefits of CEO duality have been empirically ambiguous, this study clarifies how founder CEO duality manifests its positive impacts in foreign listings. Second, by focusing on board cognition, this study confirms the negative impact of large boards, but highlights that this can be mitigated by governance leadership structure. Finally, despite organizational life-cycle theorists’ advocacy of the replacement of founder CEOs with professional CEOs in sizable ventures, this study shows the benefits of their retention when the board is large.

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“…Yet, after the first day of trading, the relationship between founders and performance becomes more complex. How well IPO firms with founder CEOs perform is based on market conditions (Tupper, 2016) and whether the firm was high or low technology (Gao and Jain, 2011). The founders in IPO firms create an entrepreneurial orientation in their firms (Mousa and Wales, 2012; Deb and Wiklund, 2017), create an organizational structure that allows them to be more agile (Certo et al , 2001; Nelson, 2003) and work at a discount to keep more money in their organization (He, 2008).…”

Section: Theorymentioning

confidence: 99%

“…Previous research on founder chief executive officers (CEOs) and IPO firms has focused most extensively on how having a founder CEO at time of IPO impacts how a firm performs. Early research found that founder-led IPO firms were less underpriced (Certo et al , 2001) and IPOs with founders received a higher price premium at time of listing (Nelson, 2003), while more recent studies have found that founders do not have an effect on IPO underpricing (Park et al , 2016) and their influence on long-term IPO performance was found to be dependent on firm characteristics (Gao and Jain, 2011) and context (Tupper, 2016). Previous researchers have also focused on why founder CEOs are retained or replaced at the time of IPO (Hearn and Filatotchev, 2019; Jain and Tabak, 2008).…”

Section: Introductionmentioning

confidence: 99%

Who does the media love? A qualitative content analysis of the narratives of founders and nonfounders in IPO firms

Tupper

2021

BJM

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PurposeResearchers have investigated the distinctions between founder and nonfounder chief executive officers (CEOs) for different performance variables. Researchers have also investigated the use of media as supplemental information that investors review to make decisions about initial public offering (IPO) firms. Research that investigates founders and nonfounder CEOs of IPO firms in the media is limited but growing. This paper aims to explore how founder and nonfounder CEOs' narratives are portrayed differently in business media following an IPO.Design/methodology/approachUsing insights from the narrative paradigm, 1,057 news paragraphs about CEOs from 19 matched pairs (38 firms) were content analyzed using a contrasting coding strategy.FindingsFounders and nonfounders' narratives differ in three ways. Specifically, founder CEOs are more likely to (1) have their personal background detailed in the media, (2) translate technical business information to easy-to-understand general language and (3) be quoted talking about positive information than nonfounder CEOs.Research limitations/implicationsThe results of this study show the media's role in creating narratives about management and how the experiences of founders and nonfounders are represented differently in the media. The study is limited by only investigating media articles about CEOs and not investigating the entire organizational narrative.Originality/valueThis study adds to the growing literature that investigates the role the media plays in portraying management in the media at time of IPO.

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Crisis Conditions and Performance of IPO Firms: Impact of Founder-CEOs and Foreign Listings

Cited by 4 publications

References 0 publications

Capital market liability of foreignness of IPO firms

Capital market liability of foreignness of IPO firms

Effects of founder CEO duality and board size on foreign IPOs’ survival in US markets

Who does the media love? A qualitative content analysis of the narratives of founders and nonfounders in IPO firms

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