CEO Education and the Ability to Raise Capital

Posted: 4 Jun 2019 Last revised: 29 Sep 2019

Date Written: April 17, 2019


Exploiting a unique hand-collected dataset, we offer robust evidence that IPO firms led by CEOs holding advanced degrees or having graduated from selective academic institutions are associated with superior IPO performance (i.e., lower underpricing). The impact of the CEO education background is pronounced among hard-to-value firms. Consistent with the notion that firms signal their management quality by leveraging the prestige of CEO education, we find that the results also hold in the long-term and are mainly driven by CEOs with Doctoral Degrees. Overall, our results suggest that education delivers the skills required to withstand the demands of public trading.

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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