Join the first of our Research Seminar Series with Professor Jake Messersmith, University of Nebraska-Lincoln.
Paper Title: Imprinting at IPO and Subsequent Downsizing Decisions
Abstract
This paper leverages imprinting theory to assess the extent to which a firm’s espoused commitment to employees at the time of their initial public offering (IPO) affects subsequent decisions related to the management of human capital. Specifically, this paper investigates whether firms with a stronger commitment to employees at the time of the IPO are more or less likely to engage in downsizing initiatives in subsequent years. We further assess key moderators of this relationship including the amount of funds raised at IPO, founder involvement, and the presence of a controlling shareholder. We assess these potential antecedents of downsizing post-IPO using a sample of 301 firms that went public in the U.S. between 2007 and 2014. We combine data from company filings with news releases and performance data from COMPUSTAT to test our conceptual model. Preliminary results indicate that values “imprinted” at the time of IPO affect subsequent downsizing decisions.