Managerial prestige and post-IPO firm performance: A partially mediated model.

摘要

The role of top managers in shaping the performance of the firms that employ them represents a central issue to strategic management research. Indeed, a substantial amount of research has examined potential linkages between the characteristics of top managers and firm performance. However the empirical results of research in this area have been ambiguous. This study attempts to theoretically and empirically extend research on the influence of top managers on firm performance by examining the relationship between managerial prestige and firm performance in the post-IPO context.;Although upper echelons researchers have attempted to link top managers with firm performance in the past recent reviews of the upper echelons research note that little attention has been paid to top management characteristics other than those of top management team (TMT) heterogeneity, TMT size and TMT tenure. Additionally, recent reviews also suggest the need to consider potential intervening mechanisms between TMT characteristics and firm performance. This study addresses these two limitations of prior upper echelons research by examining the direct and indirect influences of managerial prestige on post-IPO firm performance.;In this study I develop a model which incorporates the resource based view and resource dependence theory with insights from upper echelons research and research on the IPO context. Results for the model developed in this study suggest the following. First, executive undergraduate prestige is positively related to post-IPO firm growth. The other aspects of managerial prestige examined in this study were not found to influence post-IPO firm performance. Second, the influence of the key external resource holders identified in this study, namely prestigious alliance partners and institutional investors with stable equity portfolios, were found to enhance firm survival rates, but were negatively associated with firm growth. Third, executive undergraduate prestige was found to garner the support of prestigious alliance partners. The remaining aspects of managerial prestige were not found to influence the support of prestigious alliance partners or dedicated institutional investors. Finally, no support was found for prestigious alliance partners and dedicated institutional investors as mediators of the relationship between managerial prestige and post-IPO firm performance.