Student Major/Year in School
Finance/Accounting, second year
Faculty Mentor Information
Dr. Ansley Chua, Finance, College of Business
Abstract
IPOs, Executive Compensation, and Firm Performance
Nancy Lopez-Rodriguez, Dr. Ansley Chua
Department of Finance
College of Business Administration
Most businesses in the United States have had the chance to become public through initial public offerings, or IPOs. IPOs allow for some of the stock of a private company to be sold to the public. These IPOs generally bring in more capital to a business so the question of whether there is a specific determinant in executive compensation between males and females during these IPOs and if this has an impact on firm performance arises. The purpose of this research is to find if gender inequality pay exists in executive compensation during IPOs and if there is an impact on the performance of a firm. The age, gender, and ethnicities of over 1,240 executives of about 230 firms was hand collected mainly from EDGAR’s (SEC’s Electronic Data Gathering, Analysis, and Retrieval system) IPO prospectus filings. The sample of IPO’s is from 2005 and 2010. With the data collected, the comparison of male and female executives’ earnings is analyzed, and the performance of the businesses is seen through stock prices and failure or success of the company. The number of females serving as executives for each company was also taken into consideration. The results show that women executives make significantly less than their male counterparts when compared with similar executive positions. We can conclude that factors such as gender can affect executive compensation and that the number of female executives serves as a determinant in firm performance overall.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
Recommended Citation
Lopez Rodriguez, Nancy (2019). "IPOSS, Executive Compensation, and Firm Performance," Kansas State University Undergraduate Research Conference. https://newprairiepress.org/ksuugradresearch/2019/posters/42
IPOSS, Executive Compensation, and Firm Performance
IPOs, Executive Compensation, and Firm Performance
Nancy Lopez-Rodriguez, Dr. Ansley Chua
Department of Finance
College of Business Administration
Most businesses in the United States have had the chance to become public through initial public offerings, or IPOs. IPOs allow for some of the stock of a private company to be sold to the public. These IPOs generally bring in more capital to a business so the question of whether there is a specific determinant in executive compensation between males and females during these IPOs and if this has an impact on firm performance arises. The purpose of this research is to find if gender inequality pay exists in executive compensation during IPOs and if there is an impact on the performance of a firm. The age, gender, and ethnicities of over 1,240 executives of about 230 firms was hand collected mainly from EDGAR’s (SEC’s Electronic Data Gathering, Analysis, and Retrieval system) IPO prospectus filings. The sample of IPO’s is from 2005 and 2010. With the data collected, the comparison of male and female executives’ earnings is analyzed, and the performance of the businesses is seen through stock prices and failure or success of the company. The number of females serving as executives for each company was also taken into consideration. The results show that women executives make significantly less than their male counterparts when compared with similar executive positions. We can conclude that factors such as gender can affect executive compensation and that the number of female executives serves as a determinant in firm performance overall.
