How Does Firm and Board Chairman Celebrity Influence IPO Underpricing? Empirical Evidence from China

摘要

We explore the relationship between organizational celebrity, the board chairman's celebrity and underpricing. Based on signaling theory, we ?nd that IPO underpricing is low when organizational celebrity or the board chairman's celebrity is high. However, the negative association between board chairman celebrity and IPO underpricing pronounced when IPO ?rms show high performance. Using a sample of 289 initial public offerings over the period 2011-2016 in China, our results support these predictions. This study shows the importance of organizational celebrity and their leader' celebrity in explaining variations in IPO underpricing.