Specialist CEOs and IPO Survival

Document Type : Research Paper

Authors

1 Professor of Accounting،Islamic Azad University, Science and Research Branch, Tehran

2 Ph.D of Accounting and university instructor

Abstract

This study examines the influence of specialist CEOs on the probability of failure and survivability of initial public offering (IPO) firms during the years 2006 to 2016. In this research, CEOs classified to specialist and generalist groups based on index of skills. Specialist CEOs pursue a career in particular functional roles, firms and industry sectors, as opposed to generalist CEOs who accumulate their work experience through various positions, firms and industries. In this research, strong evidence was found that IPO firms with a specialist CEOs have a lower probability of failure and a longer time to survive in subsequent periods following the offering. The findings suggest that specialist CEOs ability has significant implications for post-issue performance of newly listed firms. Additionally, specialist CEOs can operate in line with the goals of firm and stockholders that cause to increase the sustainability of IPO firms in longer of time.

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Keywords

References

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History

  • Receive Date: 12 September 2018
  • Revise Date: 07 January 2020
  • Accept Date: 14 January 2019

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