Corporate Culture and IPOs
43 Pages Posted: 9 Mar 2018 Last revised: 12 Jul 2021
Date Written: July 9, 2021
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 1,725 US firms that went public between 1996 and 2011 and performance information to 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
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