Abstract
We examine the R&D intensity of IPO firms and the effects of tenure, CEO ownership, and CEO duality – the practice of a single individual serving as both CEO and chair of board, on R&D expenditure in an emerging market (Taiwan). We argue that high-tech IPOs defer R&D expenditure from pre-issuance period to post-issuance period and that non-tech IPOs reduce their R&D expenditure before issuance. High-tech IPOs with CEO duality or longer tenure aggressively invest in R&D during the early aftermarket period. IPO lock-up hinders CEOs’ diversification of personal wealth from stock and leads to a negative relation between R&D intensity and CEO ownership. CEO characteristics reinforce R&D intensity of high-tech IPOs during the early aftermarket.
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