Do the personal attributes of <scp>CEOs</scp> matter in the <scp>IPO</scp> pricing process? An examination of charisma and humility

Chandler, Jeffrey A.; Petrenko, Oleg V.; Hayes, Nathan; Aime, Federico; Blake, Andrew B.

doi:10.1002/sej.1451

Cited by 10 publications

(1 citation statement)

References 130 publications

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“…Female founders are viewed as incongruent with leadership stereotypes and are held to higher standards than male founders by bank lenders in their lending decisions (Eddleston et al, 2016). (e.g., Fanelli, Misangyi, & Tosi, 2009;Harrison, Phillips, & Freeman, 2020;Harrison, Thurgood, et al, 2020), while discounting CEOs who do not (e.g., Chandler et al, 2023;Cowen et al, 2022;Lee & James, 2007;Petrenko et al, 2019;Smith, Chown, & Gaughan, 2021).…”

Section: Founders Who Display Characteristics Thatmentioning

confidence: 99%

Toward a Stakeholder View of Upper Echelons: A Framework Synthesis Review and Future Research Agenda

Recendes,

Chandler,

Huang

et al. 2023

Journal of Management

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The growing literature at the intersection of executives’ characteristics and stakeholders’ evaluations argues that executives’ characteristics not only have “first-order effects” on their organizations’ actions and outcomes, as in upper echelons theorizing, but also give rise to “second-order effects” or “opportunity structures,” whereby stakeholders evaluate and react to focal executives’ organizations based on those characteristics. Despite many insights from the burgeoning literature on the second-order effects of executives’ characteristics on stakeholders’ evaluations and reactions, the literature lacks a comprehensive framework with core tenets by which stakeholders form evaluations of executives’ characteristics that drive their actions (or, reactions, as it were) based on such characteristics and the ensuing outcomes. In turn, knowledge from the proliferating literature on how stakeholders react on the basis of their evaluations of referent organizations’ executives’ characteristics is fragmented, consisting of a series of disconnected findings and attendant insights scattered across various theoretical and topical domains. We conducted a framework synthesis of the literature to iteratively derive a conceptual framework from extant research—which we call the stakeholder view of upper echelons—that synthesizes knowledge at the intersection of executives’ characteristics and stakeholders’ reactions around this framework. In doing so, we provide the foundation for future research to help extend knowledge in this important domain. We identify several avenues that are important for future work to address and provide practical implications from our framework.

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Section: Founders Who Display Characteristics Thatmentioning

confidence: 99%

Toward a Stakeholder View of Upper Echelons: A Framework Synthesis Review and Future Research Agenda

Recendes,

Chandler,

Huang

et al. 2023

Journal of Management

Self Cite

View full text Add to dashboard Cite

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Developing and validating the charismatic leadership tactics scale: evidence from multi-source questionnaire studies, cognitive and behavioral assessments and a leadership training evaluation

Maran

2024

Rev Manag Sci

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Charisma in managers is a leadership vitamin that enables them to lead more effectively and improve organizational performance. However, existing questionnaire measures of leaders’ charisma suffer from several limitations, primarily that they almost exclusively assess leaders’ charisma in terms of its effects rather than the constituent behaviors, thus conflating cause and effect. Employing the signaling approach to leaders' charisma, I developed and validated the Charismatic Leadership Tactics Scale (CLTS) across ten studies to measure leaders' charisma as an exogenous variable. Scale items were derived from empirical research on distinct charismatic leadership tactics. First, I established the factorial structure and internal consistency of the CLTS with managers (Study 1) and employees (Study 2). Second, I tested the agreement between manager and employee ratings and the scale’s convergent, discriminant, and incremental validity (Studies 3, 4). Third, I demonstrated that the CLTS relate to objectively measured harismatic tactics, the cognitive abilities underlying leaders’ charisma, and the outcomes that leaders’ charisma is expected to influence (external validity; Studies 5, 6, 7). Fourth, I showed the scale’s sensitivity to change in a charisma training program for managers (Study 8). Finally, I present a cross-cultural adaptation of the CLTS with managers (Study 9) and employees (Study 10). Utilizing diverse methodologies, including cross-sectional studies, automated behavioral assessments, cognitive tests, negotiation tasks, and a quasi-experimental training evaluation, these studies establish the CLTS as a valid instrument. The CLTS matches or exceeds established charismatic leadership measures while disentangling its measurement from endogenous or conflicting influences.

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Government Subsidies and IPO Firms’ Short-Term Excess Returns: Evidence from China

Xu,

Li,

Zhang

et al. 2024

J Knowl Econ

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As an important tool for local governments to intervene in the listing process in their jurisdiction, the implementation effect of government subsidy has been quite controversial. This study examines the pricing mechanism of Initial Public Offerings (IPO) within China’s macro institutional environment. The period from April 2012 to December 2015 was selected as the sample observation period, with companies listed on Growth Enterprise Market (GEM) as the study objects. By focusing on IPO firms’ short-term excess returns, the multiple linear regression model and propensity score matching method (PSM) were applied to evaluate the actual impact of local government intervention through financial subsidies during the listing process. The results show that government subsidies improve IPO firm’s short-term excess returns. This promotion effect is more significant in state-owned enterprises rather than in private enterprises. Moreover, the implicit window guidance weakens the promotion effect of government subsidies on the short-term excess returns. Further, the more government subsidies the IPO firms receive, the worse their long-term performance will be. The findings demonstrate that local governments employ financial subsidies to expedite the listing process within their jurisdiction, thereby facilitating IPO companies in generating short-term excessive returns while simultaneously impeding the normal production and operation. The conclusion enhances theoretical understanding regarding high underpricing, while also offering investors a novel approach to interpreting government subsidy information and assessing IPO firm’s earnings sustainability.

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Do the personal attributes of CEOs matter in the IPO pricing process? An examination of charisma and humility

Cited by 10 publications

References 130 publications

Toward a Stakeholder View of Upper Echelons: A Framework Synthesis Review and Future Research Agenda

Toward a Stakeholder View of Upper Echelons: A Framework Synthesis Review and Future Research Agenda

Developing and validating the charismatic leadership tactics scale: evidence from multi-source questionnaire studies, cognitive and behavioral assessments and a leadership training evaluation

Government Subsidies and IPO Firms’ Short-Term Excess Returns: Evidence from China

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