The impact of corporate governance measures on the performance of West African IPO firms
The impact of corporate governance measures on the performance of West African IPO firms
This paper examines the impact on underpricing and firm market value arising from IPO firms implementing a range of governance attributes such as the separation of CEO and Chairman roles, the founder ceding CEO position, establishment of committees and board size. Furthermore I study the determinants of director retained ownership and the relation between this and underpricing. Using a comprehensive sample of 37 locally listed IPO firm's from across West Africa I find evidence of a mixed impact from the adoption of universally recognised governance mechanisms. Higher levels of retained director ownership increase underpricing in contrast to that of founders.
Agency theory, Cost of equity, IPO, Underpricing, West Africa
130-151
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
June 2011
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2011)
The impact of corporate governance measures on the performance of West African IPO firms.
Emerging Markets Review, 12 (2), .
(doi:10.1016/j.ememar.2011.02.004).
Abstract
This paper examines the impact on underpricing and firm market value arising from IPO firms implementing a range of governance attributes such as the separation of CEO and Chairman roles, the founder ceding CEO position, establishment of committees and board size. Furthermore I study the determinants of director retained ownership and the relation between this and underpricing. Using a comprehensive sample of 37 locally listed IPO firm's from across West Africa I find evidence of a mixed impact from the adoption of universally recognised governance mechanisms. Higher levels of retained director ownership increase underpricing in contrast to that of founders.
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Accepted/In Press date: 15 February 2011
e-pub ahead of print date: 22 February 2011
Published date: June 2011
Keywords:
Agency theory, Cost of equity, IPO, Underpricing, West Africa
Identifiers
Local EPrints ID: 423426
URI: http://eprints.soton.ac.uk/id/eprint/423426
ISSN: 1566-0141
PURE UUID: cb32ce26-0512-4164-8636-b9d2e15bae4f
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Date deposited: 21 Sep 2018 16:30
Last modified: 16 Mar 2024 04:37
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