Corporate culture and IPOs

Douglas J. Cumming; Antonio Meles; Gabriele Sampagnaro; Vincenzo Verdoliva

doi:10.1111/eufm.12423

Corporate culture and IPOs

Douglas J. Cumming^*, Antonio Meles, Gabriele Sampagnaro, Vincenzo Verdoliva

^*Corresponding author for this work

Finance

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Abstract

This study documents corporate culture at the time of initial public offering (IPO) and the relationship between corporate culture at the time of IPO and firm financial performance. Based on a sample of 1157 US firms that went public between 1996 and 2011 and performance information through 2016, the data provide strong evidence that regional culture, industry characteristics, and pre‐IPO financing play key roles in explaining a firm's cultural orientation. Moreover, the data indicate that IPO firms with a highly competition‐ and creation‐oriented culture experience higher profitability and less risk of financial distress than other IPO firms.

Original language	English
Journal	European Financial Management
Early online date	6 May 2023
DOIs	https://doi.org/10.1111/eufm.12423
Publication status	E-pub ahead of print - 6 May 2023

Keywords

corporate culture
IPOs
regional culture

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10.1111/eufm.12423Licence: Creative Commons: Attribution (CC BY)

CummingD2023CorporateFinal published version, 1.56 MBLicence: Creative Commons: Attribution (CC BY)

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AU - Sampagnaro, Gabriele

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N2 - This study documents corporate culture at the time of initial public offering (IPO) and the relationship between corporate culture at the time of IPO and firm financial performance. Based on a sample of 1157 US firms that went public between 1996 and 2011 and performance information through 2016, the data provide strong evidence that regional culture, industry characteristics, and pre‐IPO financing play key roles in explaining a firm's cultural orientation. Moreover, the data indicate that IPO firms with a highly competition‐ and creation‐oriented culture experience higher profitability and less risk of financial distress than other IPO firms.

AB - This study documents corporate culture at the time of initial public offering (IPO) and the relationship between corporate culture at the time of IPO and firm financial performance. Based on a sample of 1157 US firms that went public between 1996 and 2011 and performance information through 2016, the data provide strong evidence that regional culture, industry characteristics, and pre‐IPO financing play key roles in explaining a firm's cultural orientation. Moreover, the data indicate that IPO firms with a highly competition‐ and creation‐oriented culture experience higher profitability and less risk of financial distress than other IPO firms.

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KW - IPOs

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SN - 1354-7798

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Corporate culture and IPOs

Abstract

Keywords

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