Who leaves money on the table? The role of founder identity in Hong Kong

Yan-leung Cheung, Yunhao Dai*, Zhiwei Ouyang, Weiqiang Tan

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    8 Citations (Scopus)
    14 Downloads (Pure)


    This study investigates the effect of corporate governance factors on the underpricing of initial public offerings (IPOs) in Hong Kong, and the results show that this effect is significant. IPOs are categorized into four subgroups based on the role of the founder: (1) no-founder firms (companies with no specific founder), (2) pure-founder firms (companies whose founder is neither the company’s chairman of the board nor its CEO), (3) founder-chairman/CEO firms (companies whose founder is either the company’s chairman of the board or its CEO) and (4) founder-chairman-CEO firms (companies whose founder is the chairman and CEO). The results demonstrate a significant descending pattern for the underpricing level of the four subgroups, which can be explained by the varying incentive and behaviour mechanisms that result from the various founder identities.

    Original languageEnglish
    Pages (from-to)774-788
    Number of pages15
    JournalApplied Economics
    Issue number7
    Early online date19 Jun 2017
    Publication statusPublished - 7 Feb 2018

    Scopus Subject Areas

    • Economics and Econometrics

    User-Defined Keywords

    • board of directors
    • corporate governance
    • Family firms
    • Hong Kong
    • IPO underpricing


    Dive into the research topics of 'Who leaves money on the table? The role of founder identity in Hong Kong'. Together they form a unique fingerprint.

    Cite this