The Role Of The Venture Leader Initiative In Ipo Accomplishment-The Impact Of Leader Characteristics On Ipo Performance | Miyuki Mitsuda & Chihiro Watanabe

Japan?s new ventures start-up ratio is far behind of the ratios in other industrialized countries due primarily due to a deep trench called the CHASM impediment that lies ahead of a new venture initial public offerings (IPO). However, noteworthy performance with respect to the rapid accomplishment of IPOs can be observed in recent years, particularly by mobile phone firms (MPF: new venture firms associated with mobile phones and allied business activities). Sources of MPF success in rapid IPO accomplishment can largely be attributed to intensive publicising efforts (promotional efforts) based on the self-propagating nature of IT and subsequent large stockholder involvement. Given that the entrepreneurial sense and mind of the venture leaders are decisive with regard to the reactions of the customers and markets against new venture behavior, publicising efforts as well as large stockholder involvement can be attributed to venture leader characteristics. Prompted by the foregoing hypothetical views, the impact of leader characteristics on IPO performance was analyzed. On the basis of a questionnaire survey of 577 ventures which accomplished an IPO over the period 2002-2005, and utilizing the Enneagram approach, an empirical analysis focusing on the identification of leader characteristics governing IPO performance was attempted. Noteworthy findings include the identification of leader characteristics contributing to the rapid accomplishment of an IPO.