Do financial expert CEOs matter for newly public firms?

Dimitrios Gounopoulos, Panagiotis Loukopoulos, Georgios Loukopoulos

Research output: Contribution to conferencePaper

Abstract

In this paper we analyse the relation between financial expert CEOs and the long-term viability of Initial Public Offering (IPOs). We uncover strong evidence that IPO firms run by financial expert CEOs have a lower probability of failure and longer time to survive in the aftermarket. In an attempt to identify the underlying causes of this relationship, we find that CEOs with a career background in finance get better access to the IPO market, as evidenced by lower absolute revisions during bookbuilding and a lower amount of money left on the table. In addition, they exhibit lower volatility in the immediate after market, stronger stock market and higher operating returns. Taken together, our results show that financial expertise is a crucial factor in determining the success of an IPO.

Conference

Conference2019 European FMA Conference
CountryUnited Kingdom
CityGlasgow
Period12/06/1914/06/19
Internet address

Fingerprint

Public firm
Chief executive officer
Initial public offerings
Aftermarket
Bookbuilding
Financial expertise
Viability
Stock market
Factors
Finance
Lower probabilities

Keywords

  • Initial Public Offerings
  • IPO Survival
  • financial expert CEOs

Cite this

Gounopoulos, D., Loukopoulos, P., & Loukopoulos, G. (2019). Do financial expert CEOs matter for newly public firms?. Paper presented at 2019 European FMA Conference, Glasgow, United Kingdom.
Gounopoulos, Dimitrios ; Loukopoulos, Panagiotis ; Loukopoulos, Georgios. / Do financial expert CEOs matter for newly public firms?. Paper presented at 2019 European FMA Conference, Glasgow, United Kingdom.53 p.
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Gounopoulos, D, Loukopoulos, P & Loukopoulos, G 2019, 'Do financial expert CEOs matter for newly public firms?' Paper presented at 2019 European FMA Conference, Glasgow, United Kingdom, 12/06/19 - 14/06/19, .

Do financial expert CEOs matter for newly public firms? / Gounopoulos, Dimitrios; Loukopoulos, Panagiotis; Loukopoulos, Georgios.

2019. Paper presented at 2019 European FMA Conference, Glasgow, United Kingdom.

Research output: Contribution to conferencePaper

TY - CONF

T1 - Do financial expert CEOs matter for newly public firms?

AU - Gounopoulos, Dimitrios

AU - Loukopoulos, Panagiotis

AU - Loukopoulos, Georgios

PY - 2019/6/13

Y1 - 2019/6/13

N2 - In this paper we analyse the relation between financial expert CEOs and the long-term viability of Initial Public Offering (IPOs). We uncover strong evidence that IPO firms run by financial expert CEOs have a lower probability of failure and longer time to survive in the aftermarket. In an attempt to identify the underlying causes of this relationship, we find that CEOs with a career background in finance get better access to the IPO market, as evidenced by lower absolute revisions during bookbuilding and a lower amount of money left on the table. In addition, they exhibit lower volatility in the immediate after market, stronger stock market and higher operating returns. Taken together, our results show that financial expertise is a crucial factor in determining the success of an IPO.

AB - In this paper we analyse the relation between financial expert CEOs and the long-term viability of Initial Public Offering (IPOs). We uncover strong evidence that IPO firms run by financial expert CEOs have a lower probability of failure and longer time to survive in the aftermarket. In an attempt to identify the underlying causes of this relationship, we find that CEOs with a career background in finance get better access to the IPO market, as evidenced by lower absolute revisions during bookbuilding and a lower amount of money left on the table. In addition, they exhibit lower volatility in the immediate after market, stronger stock market and higher operating returns. Taken together, our results show that financial expertise is a crucial factor in determining the success of an IPO.

KW - Initial Public Offerings

KW - IPO Survival

KW - financial expert CEOs

M3 - Paper

ER -

Gounopoulos D, Loukopoulos P, Loukopoulos G. Do financial expert CEOs matter for newly public firms?. 2019. Paper presented at 2019 European FMA Conference, Glasgow, United Kingdom.