IDEAS home Printed from https://ideas.repec.org/a/kap/jmgtgv/v22y2018i3d10.1007_s10997-017-9397-1.html
   My bibliography  Save this article

Looking at the IPO from the “top floor”: a literature review

Author

Listed:
  • Alessandro Cirillo

    () (University of Foggia)

  • Donata Mussolino

    () (University of Naples “Federico II”)

  • Sara Saggese

    () (University of Naples “Federico II”)

  • Fabrizia Sarto

    () (University of Naples “Federico II”)

Abstract

Abstract This article aims to assess the current situation and the evolution of the literature on the role of top level decision-makers in initial public offerings. The article combines bibliometric and qualitative reviews of 147 articles published in 57 journals until 2015. Findings show that the debate on the role of top-level decision-makers in initial public offerings has followed an irregular pathway. Research attention has moved from studies on the actors and the dynamics of going public to a focus on the strategic implications of initial public offerings. The paper is a good starting point for future policy-making interventions designed to support top-level decision-making. By enhancing awareness of the strategic role of initial public offerings, we hope to improve the governance practices associated with them. The paper also sheds light on the importance of fostering the corporate transparency of top-level decision-making in firms going public, as an additional tool to increase investors’ trust and attract financial resources. Finally, the paper provides a comprehensive overview of the academic field, examining research trends and the evolutionary pattern. It also suggests future research avenues by identifying un(der)explored issues to advance knowledge on the topic.

Suggested Citation

  • Alessandro Cirillo & Donata Mussolino & Sara Saggese & Fabrizia Sarto, 2018. "Looking at the IPO from the “top floor”: a literature review," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(3), pages 661-688, September.
  • Handle: RePEc:kap:jmgtgv:v:22:y:2018:i:3:d:10.1007_s10997-017-9397-1
    DOI: 10.1007/s10997-017-9397-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10997-017-9397-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gerasymenko, Violetta & Arthurs, Jonathan D., 2014. "New insights into venture capitalists' activity: IPO and time-to-exit forecast as antecedents of their post-investment involvement," Journal of Business Venturing, Elsevier, vol. 29(3), pages 405-420.
    2. repec:eee:infome:v:11:y:2017:i:4:p:959-975 is not listed on IDEAS
    3. Nielsson, Ulf, 2013. "Do less regulated markets attract lower quality firms? Evidence from the London AIM market," Journal of Financial Intermediation, Elsevier, vol. 22(3), pages 335-352.
    4. Fan, Joseph P.H. & Wong, T.J. & Zhang, Tianyu, 2007. "Politically connected CEOs, corporate governance, and Post-IPO performance of China's newly partially privatized firms," Journal of Financial Economics, Elsevier, vol. 84(2), pages 330-357, May.
    5. Lucian A. Bebchuk & Michael S. Weisbach, 2010. "The State of Corporate Governance Research," Review of Financial Studies, Society for Financial Studies, vol. 23(3), pages 939-961, March.
    6. Bell, R. Greg & Moore, Curt B. & Filatotchev, Igor, 2012. "Strategic and institutional effects on foreign IPO performance: Examining the impact of country of origin, corporate governance, and host country effects," Journal of Business Venturing, Elsevier, vol. 27(2), pages 197-216.
    7. repec:bla:stratm:v:29:y:2008:i:3:p:319-336 is not listed on IDEAS
    8. Ritter, Jay R, 1984. "The "Hot Issue" Market of 1980," The Journal of Business, University of Chicago Press, vol. 57(2), pages 215-240, April.
    9. Claire E. Crutchley & Jacqueline L. Garner & Beverly B. Marshall, 2002. "An Examination of Board Stability and the Long-Term Performance of Initial Public Offerings," Financial Management, Financial Management Association, vol. 31(3), Fall.
    10. Monica C. Higgins & Ranjay Gulati, 2003. "Getting Off to a Good Start: The Effects of Upper Echelon Affiliations on Underwriter Prestige," Organization Science, INFORMS, vol. 14(3), pages 244-263, June.
    11. Corrado Cuccurullo & Massimo Aria & Fabrizia Sarto, 2016. "Foundations and trends in performance management. A twenty-five years bibliometric analysis in business and public administration domains," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(2), pages 595-611, August.
    12. Jay R. Ritter & Ivo Welch, 2002. "A Review of IPO Activity, Pricing, and Allocations," Journal of Finance, American Finance Association, vol. 57(4), pages 1795-1828, August.
    13. Marco Pagano & Fabio Panetta & and Luigi Zingales, 1998. "Why Do Companies Go Public? An Empirical Analysis," Journal of Finance, American Finance Association, vol. 53(1), pages 27-64, February.
    14. Jain, Bharat A. & Jayaraman, Narayanan & Kini, Omesh, 2008. "The path-to-profitability of Internet IPO firms," Journal of Business Venturing, Elsevier, vol. 23(2), pages 165-194, March.
    15. Marius Popescu & Zhaojin Xu, 2011. "Co‐managers, Information, and the Secondary Market Liquidity of Initial Public Offerings," Financial Management, Financial Management Association International, vol. 40(1), pages 199-218, March.
    16. repec:bla:stratm:v:26:y:2005:i:5:p:489-496 is not listed on IDEAS
    17. Laura Casares Field & Jonathan M. Karpoff, 2002. "Takeover Defenses of IPO Firms," Journal of Finance, American Finance Association, vol. 57(5), pages 1857-1889, October.
    18. Boris Durisin & Fulvio Puzone, 2009. "Maturation of Corporate Governance Research, 1993 – 2007: An Assessment," KITeS Working Papers 012, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised May 2009.
    19. Igor Filatotchev & Mike Wright & Mufit Arberk, 2006. "Venture Capitalists, Syndication and Governance in Initial Public Offerings," Small Business Economics, Springer, vol. 26(4), pages 337-350, May.
    20. Andreas Charitou & Christodoulos Louca & Stelios Panayides, 2007. "Cross-Listing, Bonding Hypothesis and Corporate Governance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(7-8), pages 1281-1306.
    21. repec:bla:stratm:v:25:y:2004:i:10:p:981-1004 is not listed on IDEAS
    22. Aggarwal, Rajesh K. & Krigman, Laurie & Womack, Kent L., 2002. "Strategic IPO underpricing, information momentum, and lockup expiration selling," Journal of Financial Economics, Elsevier, vol. 66(1), pages 105-137, October.
    23. Luo, Yongli & Fang, Fang & Esqueda, Omar A., 2012. "The overseas listing puzzle: Post-IPO performance of Chinese stocks and ADRs in the U.S. market," Journal of Multinational Financial Management, Elsevier, vol. 22(5), pages 193-211.
    24. Benninga, Simon & Helmantel, Mark & Sarig, Oded, 2005. "The timing of initial public offerings," Journal of Financial Economics, Elsevier, vol. 75(1), pages 115-132, January.
    25. Massimo Colombo & Annalisa Croce & Samuele Murtinu, 2014. "Ownership structure, horizontal agency costs and the performance of high-tech entrepreneurial firms," Small Business Economics, Springer, vol. 42(2), pages 265-282, February.
    26. Alavi, Arash & Pham, Peter Kien & Pham, Toan My, 2008. "Pre-IPO ownership structure and its impact on the IPO process," Journal of Banking & Finance, Elsevier, vol. 32(11), pages 2361-2375, November.
    27. Valérie Revest & Alessandro Sapio, 2013. "Does the alternative investment market nurture firm growth? A comparison between listed and private companies," Industrial and Corporate Change, Oxford University Press, vol. 22(4), pages 953-979, August.
    28. Baker, Malcolm & Gompers, Paul A, 2003. "The Determinants of Board Structure at the Initial Public Offering," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 569-598, October.
    29. Siew Hong Teoh & Ivo Welch & T.J. Wong, 1998. "Earnings Management and the Long-Run Market Performance of Initial Public Offerings," Journal of Finance, American Finance Association, vol. 53(6), pages 1935-1974, December.
    30. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    31. Renato Giovannini, 2010. "Corporate governance, family ownership and performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(2), pages 145-166, May.
    32. Christine M. Beckman & M. Diane Burton, 2008. "Founding the Future: Path Dependence in the Evolution of Top Management Teams from Founding to IPO," Organization Science, INFORMS, vol. 19(1), pages 3-24, February.
    33. repec:bla:eufman:v:15:y:2009:i:4:p:844-884 is not listed on IDEAS
    34. Suchard, Jo-Ann, 2009. "The impact of venture capital backing on the corporate governance of Australian initial public offerings," Journal of Banking & Finance, Elsevier, vol. 33(4), pages 765-774, April.
    35. repec:wly:coacre:v:31:y:2014:i:3:p:818-850 is not listed on IDEAS
    36. Brennan, M. J. & Franks, J., 1997. "Underpricing, ownership and control in initial public offerings of equity securities in the UK," Journal of Financial Economics, Elsevier, vol. 45(3), pages 391-413, September.
    37. Chemmanur, Thomas J. & Paeglis, Imants, 2005. "Management quality, certification, and initial public offerings," Journal of Financial Economics, Elsevier, vol. 76(2), pages 331-368, May.
    38. Mudambi, Ram & Treichel, Monica Zimmerman, 2005. "Cash crisis in newly public Internet-based firms: an empirical analysis," Journal of Business Venturing, Elsevier, vol. 20(4), pages 543-571, July.
    39. Yuval Deutsch & Thomas W. Ross, 2003. "You are Known by the Directors You Keep: Reputable Directors as a Signaling Mechanism for Young Firms," Management Science, INFORMS, vol. 49(8), pages 1003-1017, August.
    40. Sheng-Syan Chen & Wen-Chun Lin & Shao-Chi Chang & Chih-Yen Lin, 2013. "Information Uncertainty, Earnings Management, and Long-run Stock Performance Following Initial Public Offerings," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 40(9-10), pages 1126-1154, November.
    41. Marta Marsilio & Giulia Cappellaro & Corrado Cuccurullo, 2011. "The Intellectual Structure Of Research Into PPPs," Public Management Review, Taylor & Francis Journals, vol. 13(6), pages 763-782, September.
    42. repec:bla:stratm:v:24:y:2003:i:8:p:707-724 is not listed on IDEAS
    43. James C. Brau & Bill Francis & Ninon Kohers, 2003. "The Choice of IPO versus Takeover: Empirical Evidence," The Journal of Business, University of Chicago Press, vol. 76(4), pages 583-612, October.
    44. Qiming Wang & James A. Ligon, 2009. "The Underpricing of Insurance IPOs," Financial Management, Financial Management Association International, vol. 38(2), pages 301-322, June.
    45. McGilvery, Andrew & Faff, Robert & Pathan, Shams, 2012. "Competitive valuation effects of Australian IPOs," International Review of Financial Analysis, Elsevier, vol. 24(C), pages 74-83.
    46. Jay C. Hartzell & Jarl G. Kallberg & Crocker H. Liu, 2008. "The Role of Corporate Governance in Initial Public Offerings: Evidence from Real Estate Investment Trusts," Journal of Law and Economics, University of Chicago Press, vol. 51(3), pages 539-562, August.
    47. van Bommel, Jos, 2002. "Messages from market to management: the case of IPOs," Journal of Corporate Finance, Elsevier, vol. 8(2), pages 123-138, March.
    48. William Q. Judge & Michael A. Witt & Alessandro Zattoni & Till Talaulicar & Jean Jinghan Chen & Krista Lewellyn & Helen Wei Hu & Dhirendra Shukla & R. Greg Bell (Robert) & Jonas Gabrielsson & Felix Lo, 2015. "Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1174-1185, August.
    49. Hearn, Bruce, 2011. "The performance and the effects of family control in North African IPOs," International Review of Financial Analysis, Elsevier, vol. 20(3), pages 140-151, June.
    50. Yin-Hua Yeh & Pei-Gi Shu & Re-Jin Guo, 2008. "Ownership Structure and IPO Valuation-Evidence from Taiwan," Financial Management, Financial Management Association International, vol. 37(1), pages 141-161, March.
    51. Deeds, David L. & Decarolis, DONA & Coombs, Joseph, 2000. "Dynamic capabilities and new product development in high technology ventures: An empirical analysis of new biotechnology firms," Journal of Business Venturing, Elsevier, vol. 15(3), pages 211-229, May.
    52. repec:bla:stratm:v:33:y:2012:i:8:p:914-937 is not listed on IDEAS
    53. Dawson, Alexandra & Mussolino, Donata, 2014. "Exploring what makes family firms different: Discrete or overlapping constructs in the literature?," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 169-183.
    54. Ding, Yuan & Nowak, Eric & Zhang, Hua, 2010. "Foreign vs. domestic listing: An entrepreneurial decision," Journal of Business Venturing, Elsevier, vol. 25(2), pages 175-191, March.
    55. Roosenboom, Peter & Schramade, Willem, 2006. "The price of power: Valuing the controlling position of owner-managers in French IPO firms," Journal of Corporate Finance, Elsevier, vol. 12(2), pages 270-295, January.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jmgtgv:v:22:y:2018:i:3:d:10.1007_s10997-017-9397-1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.