Finance and Financial Management Commons^™

Impact Of Initial Public Offering Coalition On Deal Completion, Kevin Boeh, Colette Southam

Colette Southam

Measures of underwriter and top management team prestige have been shown to signal the underlying quality of a company in an initial public offering (IPO). We extend these measures to include the entire coalition (i.e., managers, board, venture capitalists (VCs), underwriters, auditors, and both sets of lawyers) and surprisingly find VCs to have the highest explanatory power in predicting IPO outcomes (completion or withdrawal). Companies with deep management and a separation of the CEO/chair role are more likely to hire prestigious underwriters and successfully complete IPOs. Although companies with prestigious VCs are more likely to have prestigious underwriters, companies with …