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The impact of corporate governance measures on the performance of West African IPO firms

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  • Hearn, Bruce

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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  • Hearn, Bruce, 2011. "The impact of corporate governance measures on the performance of West African IPO firms," Emerging Markets Review, Elsevier, vol. 12(2), pages 130-151, June.
    • Handle: RePEc:eee:ememar:v:12:y:2011:i:2:p:130-151
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    Cited by:

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    2. Ramit Anand & Balwinder Singh, 2019. "Effect of Composition of Board and Promoter Group Retained Ownership on Underpricing of Indian IPO firms: An Empirical Study," Indian Journal of Corporate Governance, , vol. 12(1), pages 21-38, June.
    3. Trond Randøy & R. Øystein Strøm & Roy Mersland, 2015. "The Impact of Entrepreneur–CEOs in Microfinance Institutions: A Global Survey," Entrepreneurship Theory and Practice, , vol. 39(4), pages 927-953, July.
    4. Wang, Shuangjin & Wang, Puxuan & Cebula, Richard J. & Foley, Maggie, 2023. "Board characteristics and IPO underpricing in China: The perspective of moderating effect of venture capitalists," Finance Research Letters, Elsevier, vol. 52(C).
    5. Meisam Omidian & Habibollah Nakhaei & Karim Nakhaei, 2016. "Accounting accruals, earnings management and future performance of IPOs," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(1), pages 25-37.
    6. Ramit Anand & Balwinder Singh, 2019. "Do Firm- and Board-specific Characteristics Corroborate Underpricing? A Study on the Indian IPOs," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 44(1), pages 86-102, February.
    7. Simon Gao & Tony Chieh-Tse Hou, 2019. "An Empirical Examination of IPO Underpricing Between High-technology and Non-high-technology Firms in Taiwan," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 18(1), pages 23-51, April.
    8. Rekha Handa & Balwinder Singh, 2017. "Performance of Indian IPOs: An Empirical Analysis," Global Business Review, International Management Institute, vol. 18(3), pages 734-749, June.
    9. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.
    10. Balagobei, S, 2022. "Corporate Governance and Financial Distress: Empirical Evidence from listed Consumer Services Firms in Sri Lanka ," GATR Journals afr211, Global Academy of Training and Research (GATR) Enterprise.
    11. Emanuele Teti & Ilaria Montefusco, 2022. "Corporate governance and IPO underpricing: evidence from the italian market," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 851-889, September.
    12. Munisi, Gibson & Randøy, Trond, 2013. "Corporate governance and company performance across Sub-Saharan African countries," Journal of Economics and Business, Elsevier, vol. 70(C), pages 92-110.

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