Are powerful CEOs beneficial to post-IPO survival in high technology industries?

• DOI: 10.1016/j.hitech.2007.03.002
• Publication Date: 2007-05-25T12:54:55Z
• Authors: Seung B. Bach; Anne D. Smith
• Keywords: 0502 economics and business; 05 social sciences

Abstract Does a powerful CEO affect firm survival after an initial public offering (IPO) in a high technology industry? Survival after an IPO is a critical business issue; executive power is a dimension missing from much of the research on managerial factors that affect post-IPO survival. We evaluate our research question by formulating hypotheses that link four aspects of CEO power (prestige, expert, structural, ownership) to five-year post-IPO survival in computer-related industries. Using logistic regression, we find that CEO prestige education, industry tenure, and equity ownership are positively related to post-IPO survival, whereas structural power (specifically dual CEO/Chair title) reduces five-year, post-IPO survival.