Going Public and the Internal Organization of the Firm

Daniel Bias, Benjamin Lochner, Stefan Obernberger and Merih Sevilir
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Daniel Bias: Swedish House of Finance at the Stockholm School of Economics
Stefan Obernberger: Erasmus School of Economics at Erasmus University Rotterdam
Merih Sevilir: Kelley School of Business at Indiana University

No 202214, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "We examine how firms adapt their organization when they go public. To conform with the requirements of public capital markets, we expect IPO firms to become more organized, making the firm more accountable and its human capital more easily replaceable. We find that IPO firms transform into a more hierarchical organization with smaller departments. Hiring is strongest in jobs requiring knowledge in finance, accounting, and management. New hires are better educated, but less experienced than incumbents, which reflects the staffing needs of a more hierarchical organization. Employee turnover is sizeable and directly related to changes in hierarchical layers. Wage inequality increases in public firms as they become more hierarchical. Overall, going public is associated with a comprehensive transformation of the firm’s organization which becomes geared towards operating efficiently and in accordance with capital market standards." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; IAB-Open-Access-Publikation; Börse; Buchführung; Fachkenntnisse; human resource management; innerbetriebliche Hierarchie; Kapitalmarkt; Aktiengesellschaft; Lohnstruktur; Organisationsänderung; Organisationsstruktur; organisatorischer Wandel; Personalanpassung; Personalbedarf; Personaleinstellung; Qualifikationsanforderungen; Qualifikationsbedarf; Unternehmen; Unternehmensform; zusätzliche Arbeitsplätze; 1984-2015 (search for similar items in EconPapers)
JEL-codes: D20 G32 G34 M50 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2022-06-08
New Economics Papers: this item is included in nep-bec and nep-hrm
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https://doi.org/10.48720/IAB.DP.2214

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202214

DOI: 10.48720/IAB.DP.2214

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