The paper aims to test the impact of CEO role on IPO value in family owned firms. We impose two criteria to define family firms: family involvement in the Top Management Team and family ownership. Based on unique, hand-collected, dataset we test our hypotheses on firms went public on Milano Stock Exchange between 2000 and 2011. We make inference on 77 family-owned firms and we measure IPO value from an outside investors’ perspective. Within an agency framework, we examine several CEO characteristics, namely: CEO family, CEO duality and CEO founder. Our results suggest that having a family member as CEO negatively affects IPO value: investors may anticipate the increasing of agency costs. This paper shed light into how pre-IPO governance can influence firm value.
‘IPO value of Family Firms: Does CEO role matter?’
CIRILLO, ALESSANDRO;ROMANO, MAURO
2014-01-01
Abstract
The paper aims to test the impact of CEO role on IPO value in family owned firms. We impose two criteria to define family firms: family involvement in the Top Management Team and family ownership. Based on unique, hand-collected, dataset we test our hypotheses on firms went public on Milano Stock Exchange between 2000 and 2011. We make inference on 77 family-owned firms and we measure IPO value from an outside investors’ perspective. Within an agency framework, we examine several CEO characteristics, namely: CEO family, CEO duality and CEO founder. Our results suggest that having a family member as CEO negatively affects IPO value: investors may anticipate the increasing of agency costs. This paper shed light into how pre-IPO governance can influence firm value.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
