Founder-CEO Presence and Post-IPO Outcomes: Evidence from junior stock markets in Japan

Yuji Honjo and Yuya Ikeda

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This study examines the impact of founder-chief executive officer (CEO) presence on post-initial public offering (IPO) outcomes using a sample of IPOs listed on junior stock markets in Japan. We decompose this relationship into two effects: the founder-CEO tenure effect, capturing leadership continuity after an IPO, and the founder-CEO imprinting effect, reflecting founder-CEO contributions prior to an IPO. Our results reveal that founder-CEO-led firms do not exhibit statistically significant improvements in post-IPO financial performance, measured by Tobin’s q and return on assets (ROA), but the founder-CEO tenure effect is positive and statistically significant for employment and sales growth. These findings suggest that founder-CEOs tend to pursue growth-oriented strategies after an IPO. In contrast, the founder-CEO imprinting effect has no statistically significant impact on either financial performance or firm growth. Distinguishing between tenure and imprinting effects provides a better understanding of how founder-CEO presence shapes post-IPO outcomes.

Pages: 47 pages
Date: 2026-07
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:26056

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