Corporate Culture and IPOs
European Financial Management, Forthcoming
46 Pages Posted: 27 Apr 2023
There are 2 versions of this paper
Corporate Culture and IPOs
Date Written: April 5, 2023
Abstract
This study documents corporate culture at the time of IPO and the relationship between corporate culture at the time of IPO and firm financial performance. Based on a sample of 1,157 US firms that went public between 1996 and 2011 and performance information through 2016, the data provide strong evidence that regional culture, industry characteristics, and pre-IPO financing play key roles in explaining a firm’s cultural orientation. Moreover, the data indicate that IPO firms with a highly competition- and creation-oriented culture experience higher profitability and less risk of financial distress than other IPO firms.
Keywords: Corporate culture, Regional culture, IPOs
JEL Classification: G23, G24, G32, G33, M14
Suggested Citation: Suggested Citation