Corporate culture and IPOs |
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| Authors: | Douglas J Cumming Antonio Meles Gabriele Sampagnaro Vincenzo Verdoliva |
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| Institution: | 1. FAU College of Business, Finance Department, Florida Atlantic University, Boca Raton, Florida, USA;2. Department of Economics, University of Campania “Luigi Vanvitelli”, Capua, Caserta, Italy;3. Department of Management Studies and Quantitative Methods, University of Naples Parthenope, Napoli, Italy |
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| Abstract: | This study documents corporate culture at the time of initial public offering (IPO) and the relationship between corporate culture at the time of IPO and firm financial performance. Based on a sample of 1157 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. |
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| Keywords: | corporate culture IPOs regional culture |
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