Skip to main content

Research Repository

Advanced Search

Top Management Team Quality and Innovation in Venture-Backed Private Firms and IPO Market Rewards to Innovative Activity

Chemmanur, Thomas J; Gupta, Manish; Simonyan, Karen

Top Management Team Quality and Innovation in Venture-Backed Private Firms and IPO Market Rewards to Innovative Activity Thumbnail


Authors

Thomas J Chemmanur

Karen Simonyan



Abstract

Using hand-collected data on top management team human capital (“top management quality”) of a large venture-backed private firm sample, we analyze the relation between top management team quality and pre-initial public offering (IPO) innovation productivity and the relation between pre-IPO innovation productivity and IPO market valuations. We hypothesize that firms with higher quality top management teams invest more in innovative projects and select better projects, yielding higher innovation productivity; pursue explorative rather than exploitative innovation strategies; and hire more high quality inventors. Finally, we hypothesize that IPO market rewards more innovative private firms with higher IPO firm valuations. The evidence supports these hypotheses.

Citation

Chemmanur, T. J., Gupta, M., & Simonyan, K. (2020). Top Management Team Quality and Innovation in Venture-Backed Private Firms and IPO Market Rewards to Innovative Activity. Entrepreneurship Theory and Practice, https://doi.org/10.1177/1042258720918827

Journal Article Type Article
Acceptance Date Mar 11, 2020
Online Publication Date Apr 23, 2020
Publication Date Apr 23, 2020
Deposit Date Oct 6, 2020
Publicly Available Date Mar 29, 2024
Journal Entrepreneurship Theory and Practice
Print ISSN 1042-2587
Electronic ISSN 1540-6520
Publisher SAGE Publications
Peer Reviewed Peer Reviewed
DOI https://doi.org/10.1177/1042258720918827
Public URL https://nottingham-repository.worktribe.com/output/1402140
Publisher URL https://journals.sagepub.com/doi/10.1177/1042258720918827

Files





You might also like



Downloadable Citations