By focusing on short-term financial performance, thereby articulating a specific version of reality, top managers try to secure both the understanding and support of the capital market actors. In terms of socialization, top managers pass from outsiders to newcomers and enter the encounter stage (see, Louis, 1980). The top managers begin to learn what it is like to be a listed company. In the encounter stage, socialization builds on social dynamics where the top managers observe their surroundings and try to interpret different stakeholders’ actions and their requirements (Louis, 1980).
One year after the IPO,