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Does a CEO's prior academic experience helpful to an IPO firm? The case of IPO discount

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  • Zhao, Binjie
  • Tan, Jianhua
  • Chan, Kam C.

Abstract

We examine the impact of having a chief executive officer (CEO) with prior academic experience on initial public offering (IPO) discount using a sample of Chinese IPOs. Our findings suggest that IPO firms with previous academic experience CEOs exhibit lower IPO discounts than those without such experience. The results are robust and economically significant. Additional analysis indicates that a firm's information asymmetry level mediates the impact of CEO academic experience on IPO discount and thus supports the notion that a CEO's prior academic experience helps lower the IPO firm's information asymmetry.

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  • Zhao, Binjie & Tan, Jianhua & Chan, Kam C., 2022. "Does a CEO's prior academic experience helpful to an IPO firm? The case of IPO discount," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000174
    DOI: 10.1016/j.frl.2022.102688
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    References listed on IDEAS

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    Cited by:

    1. Zeng, Jing & Liu, Xinglin & Chan, Kam C., 2024. "Is a tax deductibility of R&D investment always good for a firm? The case of IPO underpricing," Finance Research Letters, Elsevier, vol. 62(PA).
    2. Xu, Runguo & Dong, Peng, 2023. "Underwriter reputation and asset-backed securitization pricing," Finance Research Letters, Elsevier, vol. 58(PB).
    3. Xu, Wen & Zhang, Linlang & Chan, Kam C., 2024. "The effect of gambling culture on initial public offering underpricing," Finance Research Letters, Elsevier, vol. 67(PB).

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