PT  - JOURNAL ARTICLE
AU  - Daniel P. Forbes
AU  - Shalini Manrakhan
AU  - Sanjay Banerjee
TI  - Strategic Responses to an Environmental Jolt
AID  - 10.3905/jpe.2004.450953
DP  - 2004 Nov 30
TA  - The Journal of Private Equity
PG  - 63--69
VI  - 8
IP  - 1
4099  - https://pm-research.com/content/8/1/63.short
4100  - https://pm-research.com/content/8/1/63.full
AB  - We develop a model that predicts the likelihood that publicly-traded start-up firms will respond to a sudden drop in environmental munificence by replacing their CEO. The model proposes that CEOs who were founders, those who had prior experience as CEOs, and those who also held the position of board chair will be less likely to be replaced. We base these predictions on a set of knowledge-based and political considerations. We test the model on a sample of 127 Internet IPOs during the period following the dramatic devaluation of Internet stocks that occurred in Spring/Summer 2000. Results support all three hypotheses.