CEO Education and the Ability to Raise Capital

Posted: 4 Jun 2019 Last revised: 4 Feb 2020

Date Written: April 17, 2019


Exploiting a unique hand-collected dataset, we find that IPO firms led by CEOs with superior education credentials – in terms of level and quality – are associated with superior IPO performance. The impact of CEO education is pronounced among hard-to-value firms and CEOs with high career concerns. We also exploit information about the major of each CEO’s degree and show that investors perceive more favorably CEOs who obtained a degree in business, engineering, pharmacy, or law. The baseline results also hold in the long-term and are mainly driven by CEOs holding Doctoral Degrees.

Keywords: Initial Public Offerings, Underpricing, CEO Education Characteristics, Post-IPO Performance

JEL Classification: G10, G14, G39

Suggested Citation

Gounopoulos, Dimitrios and Loukopoulos, Panagiotis and Loukopoulos, Georgios, CEO Education and the Ability to Raise Capital (April 17, 2019). Available at SSRN: or

Dimitrios Gounopoulos

University of Bath ( email )

School of Management,
Wessex House, Claverton Down
Bath, BA2 7AY
United Kingdom

Panagiotis Loukopoulos

University of Strathclyde ( email )

Curran Building
100 Cathedral Street
Glasgow G4 0LN
United Kingdom

Georgios Loukopoulos (Contact Author)

The Open University ( email )

Walton Hall
Milton Keynes, MK6 7AA
United Kingdom

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