Abstract
Human capital is a key component for the resource base of the firm, particularly in high-tech entrepreneurial firms. However, research is limited in finding the direct impact of human capital of key employees on firm performance. We fill this gap by exploring the effects of dependence on key employees in IPO firms. Using a sample of high-tech firms that went public in the US stock market, we show that the IPO firm's performance is lower when the IPO prospectus discloses such dependence. In addition, among the firms with such disclosures, the long-tenure executives would moderate such negative impact.
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