TY - JOUR
T1 - Building Perceived Quality of Founder-Involved IPO Firms
T2 - Founders' Effects on Board Selection and Stock Market Performance
AU - Chahine, Salim
AU - Filatotchev, Igor
AU - Zahra, Shaker A.
N1 - Copyright:
Copyright 2011 Elsevier B.V., All rights reserved.
PY - 2011/3
Y1 - 2011/3
N2 - Research on governance has focused on large corporations, giving far less attention to smaller and younger companies especially those moving from founder-controlled start-ups to professionally managed public companies. Emphasizing founder-involved firms (i.e., firms that are floated by their original founders), this article examines interlinks between founders' prestige and selection of inside and outside directors, and short-term performance measured in terms of IPO "underpricing." The results provide evidence of positive association between founders' and directors' prestige, but there is substitution between inside and outside directors' prestige. Top management team's external board experiences reduce IPO underpricing.
AB - Research on governance has focused on large corporations, giving far less attention to smaller and younger companies especially those moving from founder-controlled start-ups to professionally managed public companies. Emphasizing founder-involved firms (i.e., firms that are floated by their original founders), this article examines interlinks between founders' prestige and selection of inside and outside directors, and short-term performance measured in terms of IPO "underpricing." The results provide evidence of positive association between founders' and directors' prestige, but there is substitution between inside and outside directors' prestige. Top management team's external board experiences reduce IPO underpricing.
UR - http://www.scopus.com/inward/record.url?scp=79952712246&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=79952712246&partnerID=8YFLogxK
U2 - 10.1111/j.1540-6520.2009.00361.x
DO - 10.1111/j.1540-6520.2009.00361.x
M3 - Article
AN - SCOPUS:79952712246
SN - 1042-2587
VL - 35
SP - 319
EP - 335
JO - Entrepreneurship: Theory and Practice
JF - Entrepreneurship: Theory and Practice
IS - 2
ER -