Publication Date

January 1995


Population ecology is utilized to understand the role of human resource management (HRM) in enhancing the performance of initial public offering (IPO) companies. This is done by examining the determinants of structural inertia and developing hypotheses on the relationship between HRM and organizational performance. The results indicate that two human resource variables (human resource value and organization-based rewards) predict initial investor reaction and long-term survival. The rewards variable negatively affects initial performance while positively impacting survival.


Suggested Citation
Welbourne, T. M. & Andrews, A. O. (1995). Predicting performance of initial public offering (IPO) firms: Should human resource management (HRM) be in the equation? (CAHRS Working Paper #95-02). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.