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 journalArticlepeer-review

2 Citations (Scopus)
1 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


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