Who leaves money on the table? The role of founder identity in Hong Kong

Yan Leung Stephen CHEUNG, Yunhao DAI, Zhiwei OUYANG, Weiqiang TAN

Research output: Contribution to journalArticle

2 Citations (Scopus)


This study investigates the effect of corporate governance factors on the underpricing of initial public offerings (IPOs) in Hong Kong, and the results show that this effect is significant. IPOs are categorized into four subgroups based on the role of the founder: (1) no-founder firms (companies with no specific founder), (2) pure-founder firms (companies whose founder is neither the company’s chairman of the board nor its CEO), (3) founder-chairman/CEO firms (companies whose founder is either the company’s chairman of the board or its CEO) and (4) founder-chairman-CEO firms (companies whose founder is the chairman and CEO). The results demonstrate a significant descending pattern for the underpricing level of the four subgroups, which can be explained by the varying incentive and behaviour mechanisms that result from the various founder identities. Copyright © 2017 Informa UK Limited, trading as Taylor & Francis Group.
Original languageEnglish
Pages (from-to)774-788
JournalApplied Economics
Issue number7
Early online dateJun 2017
Publication statusPublished - 2018



Cheung, Y.-L., Dai, Y., Ouyang, Z., & Tan, W. (2018). Who leaves money on the table? The role of founder identity in Hong Kong. Applied Economics, 50(7), 774-788. doi: 10.1080/00036846.2017.1340577


  • Family firms
  • IPO underpricing
  • Corporate governance
  • Board of directors
  • Hong Kong