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Puttin' on the Ritz: Pre-ipo Enlistment of Prestigious Affiliates as Deadline-induced Remediation
| Content Provider | Semantic Scholar |
|---|---|
| Author | Chen, Guoli Hambrick, Donald C. Pollock, Timothy G. |
| Copyright Year | 2008 |
| Abstract | We describe two theoretical explanations for the amount, pace, and costs of the prestige enhancement a firm engages in during the year before its initial public offering. The “snowball model” captures well-known processes whereby prestige-rich organizations accumulate even more prestige. The “dressing-up model” builds upon deadline-induced remediation, a phenomenon not previously studied in a macro-organizational context. In 242 software IPOs, the snowball model substantially explains final-year prestigious hiring. But there is also strong evidence of a tandem dressing-up process. As the final year counts down, prestige-poor firms aggressively hire prestigious executives and directors and pay higher prices to do so. |
| Starting Page | 954 |
| Ending Page | 975 |
| Page Count | 22 |
| File Format | PDF HTM / HTML |
| DOI | 10.5465/amj.2008.34789666 |
| Volume Number | 51 |
| Alternate Webpage(s) | http://www.personal.psu.edu/faculty/t/x/txp14/pdfs/amj08%20dressing%20up.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
