Chief Executive Officer (CEO) Tenure in Initial Public Offering (IPO) Firms: An Event History Analysis of the Determinants of Turnover
Mitsuhashi, Hitoshi; Welbourne, Theresa M.
Relying on network theory and power dependence theory, we develop a series of hypotheses that focus on determinants of Chief Executive Officer (CEO) turnover in IPO firms. We studied CEOs who had been with their companies at the IPO with a sample of 120 firms. The results indicate that having outsiders on the board of directors, selling shares at the time of the IPO, and being a part-time CEO all increase the risk of CEO turnover. CEO tenure at the time of the IPO, however, reduces turnover. Contrary to what we expected, being the founder of the company has no effect on CEO turnover.
CEO; turnover; event history analysis; IPO; tenure; company; entrepreneurship; research