Going Public and the Internal Organization of the Firm

• 成果类型: Article
• 署名作者: Bias, Daniel; Lochner, Benjamin; Obernberger, Stefan; Sevilir, Merih
• 署名单位: Vanderbilt University; University of Erlangen Nuremberg; IZA Institute Labor Economics; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC; Leibniz Association; European School of Management & Technology; Leibniz Institut fur Wirtschaftsforschung Halle (IWH); European Corporate Governance Institute
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082; 1540-6261
• DOI: 10.1111/jofi.70012
• 发表日期: 2026-02
• 页码: 459-505
• 关键词: hierarchies; KNOWLEDGE; MARKETS; access

摘要

This paper examines how initial public offerings (IPOs) affect firms' internal organization. We find that IPO firms become more hierarchical and standardized organizations, characterized by additional layers, more managers, smaller control spans, and larger administrative functions. These changes occur mostly in preparation for the IPO and can be only partially explained by growth. IPO firms with greater human capital risk experience larger hierarchical changes. Hierarchical changes help firms standardize employee roles and formalize internal processes. Our results suggest that firms reorganize to reduce their dependence on key individuals' human capital when transitioning to public markets.