The Role of Top Management Teams Behind Investors’ Valuation of Entrepreneurial IPOs

Abstract

The paper investigates the role of Top Management Teams (TMTs) characteristics behind market performance of IPOs on a secondary market. After highlighting the main differences between entrepreneurial and managerial companies, we identify effective drivers related to TMT characteristics able to distinguish between them. Next, we empirically investigate the impact of TMT characteristics on the market performance of companies listing through IPOs on the Alternative Investment Market (AIM). Last, we verify how TMTs characteristics are relevant when firms under study are led by entrepreneurial-oriented TMTs.

Keywords: entrepreneurship, Top Management Teams, firm performance, IPO, alternative investment market

JEL Classification: M10, M13, G10, G14