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The Influence of Founder Status on Firm Performance: Empirical Evidence from Canadian IPO Firms

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The Influence of Founder Status on Firm Performance: Empirical Evidence from Canadian IPO Firms

Zhang, Dan (2016) The Influence of Founder Status on Firm Performance: Empirical Evidence from Canadian IPO Firms. Masters thesis, Concordia University.

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Abstract

This study compares performance for founder-managed firms and professional-managed firms by analyzing 138 Canadian IPO firms which went public from 2004 to 2013. In this paper, we measure firm performance in two ways: Tobin’s Q and ROA are used to measure a firm’s financial performance, while firm survival status is used as a supplementary performance measure. We find that founder-managed firms underperform and underlive its counterparts when firm performance is measured by Tobin’s Q and survival status. But founder status is proved to be unrelated with ROA. The negative influence of founder status can be explained by Relevant Transaction Hypothesis which states that founder-managers may act for the controlling family and are more concerned with its associated private income stream than with maximizing the value of the firm.

Divisions:Concordia University > John Molson School of Business > Finance
Item Type:Thesis (Masters)
Authors:Zhang, Dan
Institution:Concordia University
Degree Name:M. Sc.
Program:Administration (Finance option)
Date:24 March 2016
Thesis Supervisor(s):Ullah, Saif
ID Code:980955
Deposited By: DAN ZHANG
Deposited On:17 Jun 2016 14:35
Last Modified:18 Jan 2018 17:52
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