The effects of entrepreneurial long-term commitment on post-IPO performance: Chinese evidence

Frontiers of Business Research in China

Table 7 Effects of foreign residency rights on Post-IPO firm control transfer

		Control transfer inpost-IPO 5 years		Resign from chairman or CEO positions in post-IPO 5 years		Resign from chairman or CEO positions in post-IPO 4 years
	No. of firms	Number	Percentage (%)	Number	Percentage (%)	Number	Percentage (%)
Panel A: Summary statistics
Full sample used	787	42	5.34	73	9.28	44	5.59
(1) with foreign residency	93	9	9.68	15	16.13	6	6.45
(2) without foreign residency	694	33	4.76	58	8.36	38	5.48
Diff (1–2)			4.92^b		7.77^b		0.97
Panel B: Logit regression results
	DUMMY_TRANSFER_60M			DUMMY_RESIGN_60M		DUMMY_RESIGN_48M
	(1)	Marginal Effects (dy/dx)		(2)	Marginal Effects (dy/dx)	(3)	Marginal Effects (dy/dx)
TREATED	0.753^a (5.64)	0.026		0.998^a (10.10)	0.078	0.521^b (2.12)	0.022
BHAR_3YEAR	−1.249^a (−2.90)	−0.043		−0.334^a (−3.07)	−0.026	−0.280^b (−2.23)	−0.012
SIZE_IPO	−0.287^b(− 2.40)	−0.010		0.147^a (2.84)	0.011	0.355^a (4.49)	0.015
ROA_IPO	−3.945 (−1.32)	−0.136		−2.494^b (− 2.01)	− 0.194	−1.828^c (− 1.82)	−0.078
LEV_IPO	−6.327^b(− 2.02)	− 0.218		− 0.508 (− 0.59)	−0.040	0.891 (0.73)	0.038
Industry fixed effects included?	Yes			Yes		Yes
Year fixed effects included?	Yes			Yes		Yes
No. of obs.	689			714		707
Adjusted R²	0.133			0.052		0.079

This table presents results of univariate analysis and logit regression of firm control transfer and whether an entrepreneur resigns from chairman or CEO positions. The sample includes 787 non-state IPO firms for the period 2006 to 2010 that have the post-IPO period of at least 5 years. Panel A presents the summary statistics on firm control transfer and whether an entrepreneur resigns from chairman or CEO positions for our treated sample of entrepreneurs with foreign residency rights and their control sample of entrepreneurs without foreign residency rights. Panel B reports the logit regression results for firm control transfer and whether an entrepreneur resigns from chairman or CEO positions. t-values are reported in parentheses. See Appendix for variable definitions
^a, ^b, and ^c stand for significance at the 1, 5, and 10% level, respectively