Abstract
Human capital is a key component of the resource base of the firm, particularly in high-tech entrepreneurial firms. In the initial public offering (IPO) context, the IPO firm sometimes identifies individual key employees because the IPO firm is dependent on the services of those employees. However, research is limited on determining the impact of such employee dependence on firm IPO performance. Using a sample of U.S. high-tech firms, we show that the IPO firm's performance is lower when the IPO prospectus discloses such dependence. Among firms with such disclosures, long-tenured executives increase IPO performance. In addition, the effects of long-tenured executives are stronger when multiple key employees are identified in the IPO firm.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
