Effects of social capital and power on surviving transformational change: The case of initial public offerings

Harald M. Fischer, Timothy G. Pollock

Research output: Contribution to journalArticlepeer-review

261 Scopus citations

Abstract

We examined how social capital and the power of venture capitalists and founder-CEOs affect IPO firm survival. Using data from 218 U.S. initial public offerings conducted in 1992, we found that average management team tenure and an IPO deal's network embeddedness decreased the likelihood of failure during a firm's first five years as a public entity. Founder-CEO presence at the time of an IPO interacted with CEO ownership to decrease the likelihood of failure, and CEO ownership and venture capitalist ownership concentration also decreased that likelihood.

Original languageEnglish (US)
Pages (from-to)463-481
Number of pages19
JournalAcademy of Management Journal
Volume47
Issue number4
DOIs
StatePublished - Aug 2004

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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