Business, Management and Accounting
3 years ago

CEOs with academic experience lead IPO firms to lower discounts.

1 view
Finance research letters
Does a CEO's prior academic experience helpful to an IPO firm? The case of IPO discount
Binjie Zhao, Jianhua Tan, Kam C. Chan

Paper Summary

Having a CEO with prior academic experience helps IPO firms in China to have lower IPO discounts. This means that companies with CEOs who have academic backgrounds tend to offer their shares at a lower price when going public compared to those without such CEOs. The level of information asymmetry within a firm plays a role in this relationship, showing that CEO academic experience can help reduce the information gap between the company and investors.

Related papers

Business, Management and Accounting
8 years ago

Relationship banks in IPOs lead to lower underpricing and better alignment.

Corporate Governance
Venture Capital
Banking Finance
Business, Management and Accounting
8 years ago

Sophisticated investors gain unfair advantage in IPO market, exploiting information disparity.

Corporate Governance
Asset Pricing
Public Finance
Theme background image
Social Sciences
2 years ago

Chinese IPO Stocks Show Significant Initial Returns Impacting Market Performance.

Fashion Trends
Big Data Analysis
Health Care Research
1 view