The performance and the effects of family control in North African IPOs
The performance and the effects of family control in North African IPOs
This paper examines the performance effects of family ownership and influence on board structure and its composition in firms that have recently undergone an initial public offering (IPO) in the North African region. Using a unique and comprehensive hand-collected sample of 63 locally listed IPO firm's from across North Africa we find considerable evidence of a sizeable differential between family and non-family controlled firms. I find considerable evidence supporting increased participation of family members at board level while contrastingly the wider dispersion of family ownership facilitates monitoring and surveillance and mitigates underpricing. Equally in line with the extended network and relationships involved in family firms business angels provide the optimal form of governance in contrast to the more formal private equity and venture capital industry.
Agency Theory, Family firms, IPO, North Africa, Underpricing
140-151
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
June 2011
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2011)
The performance and the effects of family control in North African IPOs.
International Review of Financial Analysis, 20 (3), .
(doi:10.1016/j.irfa.2011.02.006).
Abstract
This paper examines the performance effects of family ownership and influence on board structure and its composition in firms that have recently undergone an initial public offering (IPO) in the North African region. Using a unique and comprehensive hand-collected sample of 63 locally listed IPO firm's from across North Africa we find considerable evidence of a sizeable differential between family and non-family controlled firms. I find considerable evidence supporting increased participation of family members at board level while contrastingly the wider dispersion of family ownership facilitates monitoring and surveillance and mitigates underpricing. Equally in line with the extended network and relationships involved in family firms business angels provide the optimal form of governance in contrast to the more formal private equity and venture capital industry.
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More information
Accepted/In Press date: 15 February 2011
e-pub ahead of print date: 27 February 2011
Published date: June 2011
Keywords:
Agency Theory, Family firms, IPO, North Africa, Underpricing
Identifiers
Local EPrints ID: 423425
URI: http://eprints.soton.ac.uk/id/eprint/423425
ISSN: 1057-5219
PURE UUID: c2f87c1c-cf34-4d91-a7ba-8f3639674496
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Date deposited: 21 Sep 2018 16:30
Last modified: 16 Mar 2024 04:37
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