Journal article
Human Capital, Management Quality, and the Exit Decisions of Entrepreneurial Firms
Journal of financial and quantitative analysis, Vol.51(4), pp.1269-1295
08/01/2016
DOI: 10.1017/S0022109016000363
Abstract
We model the employee incentive problem jointly with a firm's exit decision. Our model predicts that firms in industries where human capital is important are more likely to go public and use high-powered, stock-based compensation. We also show that the higher the management quality, the more likely a firm is to go public than to be acquired. Regarding life cycle, a firm with high capital intensity and/or high management quality will choose to go public at a younger age.
Details
- Title: Subtitle
- Human Capital, Management Quality, and the Exit Decisions of Entrepreneurial Firms
- Creators
- Shan He - Oregon State UniversityC. Wei Li - Univ Iowa, Tippie Coll Business, Iowa City, IA 52242 USA
- Resource Type
- Journal article
- Publication Details
- Journal of financial and quantitative analysis, Vol.51(4), pp.1269-1295
- Publisher
- Cambridge Univ Press
- DOI
- 10.1017/S0022109016000363
- ISSN
- 0022-1090
- eISSN
- 1756-6916
- Number of pages
- 27
- Grant note
- Council on Research Summer Stipend Program Cameron Professorship in Finance at Louisiana State University Union National Life Insurance Company Business Partnership Professorship
- Language
- English
- Date published
- 08/01/2016
- Academic Unit
- Finance
- Record Identifier
- 9984380384202771
Metrics
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