Impartido por el Dr. John Pearce, Villanova University
Abstract:
Both entrepreneurship and finance literatures support the theory that a firm undertakes and initial public offering (IPO) to provide liquidity for its owners and funds for its growth. Less well - understood are the consequences of an IPO on the firm's governance that, in turn, is believed to impact the firm's long term success. In this paper, we study the IPO-governance-performance relationship. Specifically, we investigate the association between CEO survival and firm performance through the IPO period, including cases when the CEO is also the Founder of the firm. We give special attention to changes in the companies' Boards of Directors' size, composition, and stock ownership and the associated financial performance of the firms. We then provide an empirical test of hypotheses that are produced from the literature involving the performance consequences associated with the changes in the governance and ownership that accompanied the IPOs of 116 small and medium sized enterprises (SME).