The Human Resource Executive Effect in Initial Public Offering Firms
Welbourne, Theresa M.; Cyr, Linda A.
[Excerpt] There is much discussion about HRM becoming strategic, in part by hiring a senior HR executive. This study explores whether that recommendation can help entrepreneurial, growth-oriented companies. By applying organizational inertia concepts, we study whether having a senior HRM executive, reporting to the CEO, affects firm performance in a sample of initial public offering (IPO) firms. Results indicate that smaller and fast-growth IPOs experience the most gain from having a senior human resource executive.
research; earnings; employee; performance; IPO; human resource; company