Kings Today, Rich Tomorrow: How Do Steward Founder-CEOs Succeed IPOs?

Asma Fattoum

doi:10.5465/AMBPP.2013.144

Kings Today, Rich Tomorrow: How Do Steward Founder-CEOs Succeed IPOs?

Asma Fattoum

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

Abstract

This study investigates the King vs. Rich dilemma that founder-CEOs face at IPO. When undertaking IPO, founders face two options. They can either get rich, but then run the risk of losing the control over their firms; or they can remain kings by introducing defensive mechanisms, but this is likely to lead to lower IPO valuation. Using psychological ownership theory, we argue founder-CEOs to be more likely to choose the King option. This option forces them to leave money on the table at the IPO. However, their stewardship behavior allows them to recover that money on the long-run post IPO. We provide support for all hypotheses using a unique hand-collected dataset covering the full population of 467 IPOs undertaken in France between 1992 and 2011.

Original language	English
Title of host publication	Academy of Management Proceedings 2013
Editors	Leslie Toombs
Number of pages	6
Place of Publication	Briar Cliff Manor, NY
Publisher	Academy of Management
Publication date	2013
Pages	1373-1378
DOIs	https://doi.org/10.5465/AMBPP.2013.144
Publication status	Published - 2013
Event	The Academy of Management Annual Meeting 2013: Capitalism in Question - Lake Bueno Vista (Orlando), FL, United States Duration: 9 Aug 2013 → 13 Aug 2013 Conference number: 73 http://aom.org/annualmeeting/

Conference

Conference	The Academy of Management Annual Meeting 2013
Number	73
Country/Territory	United States
City	Lake Bueno Vista (Orlando), FL
Period	09/08/2013 → 13/08/2013
Internet address	http://aom.org/annualmeeting/

Series	Academy of Management Proceedings
Volume	2013
ISSN	2151-6561

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Cite this

@inproceedings{9e9854254a384fb88561db011498fc0f,

title = "Kings Today, Rich Tomorrow: How Do Steward Founder-CEOs Succeed IPOs?",

abstract = "This study investigates the King vs. Rich dilemma that founder-CEOs face at IPO. When undertaking IPO, founders face two options. They can either get rich, but then run the risk of losing the control over their firms; or they can remain kings by introducing defensive mechanisms, but this is likely to lead to lower IPO valuation. Using psychological ownership theory, we argue founder-CEOs to be more likely to choose the King option. This option forces them to leave money on the table at the IPO. However, their stewardship behavior allows them to recover that money on the long-run post IPO. We provide support for all hypotheses using a unique hand-collected dataset covering the full population of 467 IPOs undertaken in France between 1992 and 2011. ",

author = "Asma Fattoum",

year = "2013",

doi = "10.5465/AMBPP.2013.144",

language = "English",

series = "Academy of Management Proceedings",

publisher = "Academy of Management",

pages = "1373--1378",

editor = "Leslie Toombs",

booktitle = "Academy of Management Proceedings 2013",

address = "United States",

note = "The Academy of Management Annual Meeting 2013 ; Conference date: 09-08-2013 Through 13-08-2013",

url = "http://aom.org/annualmeeting/",

}

Fattoum, A 2013, Kings Today, Rich Tomorrow: How Do Steward Founder-CEOs Succeed IPOs? in L Toombs (ed.), Academy of Management Proceedings 2013. Academy of Management, Briar Cliff Manor, NY, Academy of Management Proceedings, vol. 2013, pp. 1373-1378, The Academy of Management Annual Meeting 2013, Lake Bueno Vista (Orlando), FL, United States, 09/08/2013. https://doi.org/10.5465/AMBPP.2013.144

Kings Today, Rich Tomorrow: How Do Steward Founder-CEOs Succeed IPOs? / Fattoum, Asma.
Academy of Management Proceedings 2013. ed. / Leslie Toombs. Briar Cliff Manor, NY: Academy of Management, 2013. p. 1373-1378 (Academy of Management Proceedings, Vol. 2013).

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

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