In EDS ansehen

CEO power, equity ownership and underwriter reputation as determinants of lockup period length.

Gespeichert in:
Bibliographische Detailangaben
Titel: CEO power, equity ownership and underwriter reputation as determinants of lockup period length.
Autoren: He, Lerong, Cordeiro, James J., Shaw, Tara Shankar
Quelle: Management Research Review; 2015, Vol. 38 Issue 5, p438-458, 21p
Schlagwörter: CHIEF executive officers, CORPORATE power, GOING public (Securities), REPUTATION, EQUITY (Law), ECONOMIC impact
Abstract: Purpose – The purpose of the research is to study how Chief Executive Officer’s (CEO’s) ownership, CEO’s structural and expertise power and underwriters’ reputation affect the initial public offering (IPO) lockup period. Design/methodology/approach – The study uses the multivariate regression method to test the hypothesis on a sample of 1,071 US IPOs, which comprise 80 per cent of the total population of IPOs over the 1998-2002 period. Findings – It was found that CEO equity ownership had a direct positive impact and two indicators of CEO positional power (CEO duality, founder status) and underwriter reputation had a direct negative impact on the length of the lockup period that results from IPO negotiations between the issuing firm and the underwriter. It was also found that underwriter reputation negatively moderates the impact of equity ownership (likely due to a substitution effect) and positively moderates the impact of CEO duality on lockup period length (by offsetting the impact of CEO positional power). Originality/value – Previous studies have exclusively studied the affect of economic factors on IPO lockup. This paper extends the extant literature by studying the insider’s characteristics like CEO’s power and underwriter’s reputation on IPO lockup periods. [ABSTRACT FROM AUTHOR]
Copyright of Management Research Review is the property of Emerald Publishing Limited and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Datenbank: Complementary Index
Beschreibung
Abstract:Purpose – The purpose of the research is to study how Chief Executive Officer’s (CEO’s) ownership, CEO’s structural and expertise power and underwriters’ reputation affect the initial public offering (IPO) lockup period. Design/methodology/approach – The study uses the multivariate regression method to test the hypothesis on a sample of 1,071 US IPOs, which comprise 80 per cent of the total population of IPOs over the 1998-2002 period. Findings – It was found that CEO equity ownership had a direct positive impact and two indicators of CEO positional power (CEO duality, founder status) and underwriter reputation had a direct negative impact on the length of the lockup period that results from IPO negotiations between the issuing firm and the underwriter. It was also found that underwriter reputation negatively moderates the impact of equity ownership (likely due to a substitution effect) and positively moderates the impact of CEO duality on lockup period length (by offsetting the impact of CEO positional power). Originality/value – Previous studies have exclusively studied the affect of economic factors on IPO lockup. This paper extends the extant literature by studying the insider’s characteristics like CEO’s power and underwriter’s reputation on IPO lockup periods. [ABSTRACT FROM AUTHOR]
ISSN:20408277
DOI:10.1108/MRR-02-2015-0034