I'm looking through a study on IPO market founders trying to determine whether or not there is a way to attract young entrepreneurs to a small outdoor enthusiast community and in turn help them turn their businesses into public companies that can effectively compete on the market. There is a long road to becoming a public traded company but its helpful to see which firms are likely to be more successful than others. In this case I am looking at founder CEOs that start a company and then turn them public.
According to a study on Human Capital and Agency Effects on CEO compensation we find (Williams, Coffey, & Young, 2018):
1. IPO rewards firms that have founder CEOs.
2. CEOs with venture capital experience receive higher incentive compensation.
3. CEOs with greater ownership interest in the firm receive lower incentive compensation but higher salaries.
4. CEOS of firms with a greater percentage of insiders are incentive drive but with higher salaries.
While this study looked at pharmaceutical companies I believe it may also apply to other types of firms. The more of these studies one reads the better able they can grasp where they apply and don't apply. I'm trying to figure how to attract international entrepreneurs to Delta County beyond just filling up the downtown (There is a previous article for that HERE). Best case scenario is to attract investors and entrepreneurs that want to turn their companies public. This is just theoretical exploration of a large economic development system based on innovation through cluster development. Its not so much if it happens as its more related to closing a loop in theory play and its relation to upward development of creative destruction. HERE.
Williams, D. R., Coffey, B. S., & Young, C. C. (2018). Human Capital and Agency Effects on CEO Compensation of IPO Biopharmaceutical Firms and the Market’s Response. Journal of Management and Governance, 22(2), 315–337.
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