Title: Founder's characteristics, institutions, and entrepreneurial firm's time to IPO in China

Authors: Da Teng; Chengchun Li

Addresses: College of Economics and Management, Beijing University of Chemical Technology, Beijing, China; Coventry Business School, Coventry University, Coventry, England, UK ' Business School, Changshu Institute of Technology, Changshu, China; Business School, Changzhou University, Changzhou, Jiangsu, China

Abstract: The Initial Public Offering (IPO) is the most important stage in the evolution of an entrepreneurial firm. While numerous studies have investigated the determinants of the going public decision and the post-IPO performance, few studies have studied factors that influence the transition speed from the entrepreneurial firm stage to the professional firm stage. Leveraging a unique sample of 428 firms listed on the Growth Enterprise Market in the Shenzhen Stock exchange between 2009 and 2016, we assert that the entrepreneurial founder of the IPO firm is the key determinant of the transition speed. Based on the Upper Echelon theory and institution-based view, we suggest that a founder's personal characteristics and external institutions drive the time to IPO. Our findings reveal the strategic importance of the founder and contribute to an improved understanding of why firms vary in the 'going public speed' in an important emerging economy, China.

Keywords: founder's characteristics; market-supporting institutions; time to IPO; emerging economy; China.

DOI: 10.1504/EJIM.2024.141636

European Journal of International Management, 2024 Vol.24 No.3/4, pp.649 - 671

Received: 14 Aug 2019
Accepted: 04 Apr 2020
Published online: 30 Sep 2024 *

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