New paper published in The Strategic Management Journal, entitled:

“The best of both worlds: Can founder-CEOs overcome the rich versus king dilemma after IPO?”


Asma Fattoum-Guedri (Copenhagen Business School) | Frédéric Delmar (emlyon business school) | Mike Wright (Imperial College Business School)




Founder‐CEOs often use control‐enhancing mechanisms (CEMs), such dual class shares, pyramid control structures, and pact agreements, to maintain control over their IPO firms. In this study, we investigate the effects of these CEMs on firm value at IPO and post‐IPO using a unique hand‐collected dataset comprising all founder‐CEO led firms that went public on French regulated markets between January 1992 and December 2010. We found that most founder‐CEOs who use multiple CEMs leave considerable amounts of money on the table at IPO date but they are able to recover their initial loss 5 years post‐IPO. This result suggests that an IPO may constitute a valuable financing alternative even for founder‐CEOs who value control.