Do CEO Attributes Create Value in IPO Price Revision? Evidence from China

Haifeng Guo, Ying Wang, Xiaotuo Qiao and Yuanjing Ge

Emerging Markets Finance and Trade, 2022, vol. 58, issue 3, 727-738

Abstract: This study investigates the influence of chief executive officer (CEO) attributes on price revisions in initial public offerings (IPOs) in China. Using samples of 628 firms from the ChiNext Board and 555 firms from the Small and Medium-Size Enterprises Board, we find that political connections, social networks, media exposure, tenure, and salary ratio of these CEOs significantly affect price revisions. In addition, political connections have great value for issuing firms, and media exposure plays a monitoring role in IPO pricing. Further, politically connected CEOs prefer setting high offering prices, leading to underperformance in the long term.

Date: 2022
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DOI: 10.1080/1540496X.2020.1841627

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