As part of the series of the „Finance Research Seminar“, VGSF welcomes Merih Sevilir from Halle Institute for Economic Research to present her research paper.
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Paper
Going Public and the Internal Organization of the Firm
We examine how firms adapt their organization when they go public. IPO firms transform into a more hierarchical organization and increase managerial oversight. Organizational functions dedicated to accounting, finance, information technology, and human resources become more prominent. IPO firms turn around a large chunk of their labor force and almost their entire management to adapt their human capital to the new organization. The new organization facilitates internal transfers and job promotions. Overall, going public succumbs the firm to a transformation which reduces the firm’s dependence on individual employees and efficiently organizes the production process of a public firm.
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