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

Asma Fattoum

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review


    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 languageEnglish
    Title of host publicationAcademy of Management Proceedings 2013
    EditorsLeslie Toombs
    Number of pages6
    Place of PublicationBriar Cliff Manor, NY
    PublisherAcademy of Management
    Publication date2013
    Publication statusPublished - 2013
    EventThe Academy of Management Annual Meeting 2013: Capitalism in Question - Lake Bueno Vista (Orlando), FL, United States
    Duration: 9 Aug 201313 Aug 2013
    Conference number: 73


    ConferenceThe Academy of Management Annual Meeting 2013
    Country/TerritoryUnited States
    CityLake Bueno Vista (Orlando), FL
    Internet address
    SeriesAcademy of Management Proceedings

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