CEO International Educational Experience and Successful IPO: The Mediating Effect of Global Orientations

Purpose - This study investigates the impact of CEO educational experience, specifically international educational experience, on the success of initial public offerings (IPOs) in South Korea. It explores how international collaborations and international patents mediate this relationship, highlighting the significance of these factors in a firm’s potential for overseas expansion. Design/Methodology - We utilize a sample of firms that went public on the Korea Securities Dealers Automated Quotations (KOSDAQ) and the Korea Composite Stock Price Index (KOSPI) between January 2016 and December 2019. We analyze data on CEO educational experience, international collaborations, and international patent filings. The study employs quantitative methods to assess the mediating effects of international collaboration and international patents on the relationship between CEO educational experience and IPO success. Findings - The findings reveal that both international collaborations and patents significantly mediate the relationship between CEOs with international educational experience and IPO success. Firms led by CEOs with international educational experience are more likely to engage in international collaborations and secure international patents, thereby enhancing appeal to investors and increasing IPO success. Originality/Value - This research contributes to the upper-echelons theory by linking CEO characteristics to firm-level outcomes through international market activities. It underscores the importance of a CEO’s global educational exposure in facilitating strategic international partnerships and securing intellectual property rights, offering valuable insights for small and medium-sized enterprises (SMEs) aiming to go public.