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Human Resources in Initial Public Offering Firms: Do Venture Capitalists Make a Difference?

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  • Linda A. Cyr
  • Diane E. Johnson
  • Theresa M. Welbourne

Abstract

Venture capitalists’ preference for complete, well-balanced founding teams is well established. In addition, the strategic human resource management literature posits that superior performance might accrue to firms that have a member of the top management team responsible for human resources. In this paper, we test whether or not venture capitalist backing affects the likelihood that initial public offering firms will report having a vice president of human resources. We also examine the combined effect on performance as a result of being venture capital-backed and having a vice president of human resources.

Suggested Citation

  • Linda A. Cyr & Diane E. Johnson & Theresa M. Welbourne, 2000. "Human Resources in Initial Public Offering Firms: Do Venture Capitalists Make a Difference?," Entrepreneurship Theory and Practice, , vol. 25(1), pages 77-92, October.
    • Handle: RePEc:sae:entthe:v:25:y:2000:i:1:p:77-92
    DOI: 10.1177/104225870002500107
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    Cited by:

    1. Shima Amini & Sofia Johan & Eilnaz Kashefi Pour & Abdulkadir Mohamed, 2023. "Employee Welfare, Social Capital, and IPO Firm Survival," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2174-2204, November.
    2. Shah Rukh Shakeel & Oskar Juszczyk, 2019. "The Role of Venture Capital in the Commercialization of Cleantech Companies," Management, University of Primorska, Faculty of Management Koper, vol. 14(4), pages 325-339.
    3. Clarysse, Bart & Moray, Nathalie, 2004. "A process study of entrepreneurial team formation: the case of a research-based spin-off," Journal of Business Venturing, Elsevier, vol. 19(1), pages 55-79, January.
    4. G. Page West III, 2007. "Collective Cognition: When Entrepreneurial Teams, Not Individuals, Make Decisions," Entrepreneurship Theory and Practice, , vol. 31(1), pages 77-102, January.
    5. Katherina Kuschel & María-Teresa Lepeley, 2015. "Copreneurial Women in startups: Growth-oriented or lifestyle? An aid for technology industry investors," Serie Working Papers 26, Universidad del Desarrollo, School of Business and Economics.
    6. Salim Chahine & Samer Saade & Marc Goergen, 2019. "Foreign Business Activities, Foreignness of the VC Syndicate, and IPO Value," Entrepreneurship Theory and Practice, , vol. 43(5), pages 947-973, September.
    7. Catherine M. Daily & S. Trevis Certo & Dan R. Dalton & Rungpen Roengpitya, 2003. "IPO Underpricing: A Meta-Analysis and Research Synthesis," Entrepreneurship Theory and Practice, , vol. 27(3), pages 271-295, July.
    8. N. Moray & B. Clarysse, 2004. "Institutional Change and the Resource Flows going to Spin off Projects: The case of IMEC," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/241, Ghent University, Faculty of Economics and Business Administration.
    9. Beat Reber & Bob Berry & Steve Toms, 2005. "Firm resources and quality signalling: evidence from UK initial public offerings," Applied Financial Economics, Taylor & Francis Journals, vol. 15(8), pages 575-586.
    10. Jain, Bharat A. & Tabak, Filiz, 2008. "Factors influencing the choice between founder versus non-founder CEOs for IPO firms," Journal of Business Venturing, Elsevier, vol. 23(1), pages 21-45, January.
    11. Elvira Tiziana La Rocca, 2016. "Ipo, Underpricing e Corporate governance: una meta analisi," ESPERIENZE D'IMPRESA, FrancoAngeli Editore, vol. 2016(1), pages 41-64.
    12. Anne Stévenot-Guéry & Loris Guéry, 2006. "L’influence des Capital Investisseurs sur la gestion des ressources humaines des entreprises financées:dimensions, enjeux et limites," Working Papers CREGO 1060502, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
    13. Daily, Catherine M. & Certo, S. Trevis & Dalton, Dan R., 2005. "Investment bankers and IPO pricing: does prospectus information matter?," Journal of Business Venturing, Elsevier, vol. 20(1), pages 93-111, January.
    14. Dean A. Shepherd & Holger Patzelt & J. Michael Haynie, 2010. "Entrepreneurial Spirals: Deviation–Amplifying Loops of an Entrepreneurial Mindset and Organizational Culture," Entrepreneurship Theory and Practice, , vol. 34(1), pages 59-82, January.
    15. Anne Stévenot & Loris Guéry, 2010. "Le rôle «d’entrepreneur institutionnel» des capitalinvestisseurs auprès des entreprises:des influences coercitives et cognitives liées à l’importance relative des ressources," Revue Finance Contrôle Stratégie, revues.org, vol. 13(2), pages 107-144., June.
    16. Jonathan D. Arthurs & Lowell W. Busenitz & Robert E. Hoskisson & Richard A. Johnson, 2009. "Firm–Specific Human Capital and Governance in IPO Firms: Addressing Agency and Resource Dependence Concerns," Entrepreneurship Theory and Practice, , vol. 33(4), pages 845-865, July.
    17. Ginsberg Ari & Hasan Iftekhar & Tucci Christopher L, 2011. "Unpacking the Effects of Corporate Venture Capital Investor Ties on the Reduction of Price Discounting among IPO Firms," Entrepreneurship Research Journal, De Gruyter, vol. 1(2), pages 1-29, March.

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