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

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  • Hearn, Bruce
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    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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    Bibliographic Info

    Article provided by Elsevier in its journal Emerging Markets Review.

    Volume (Year): 12 (2011)
    Issue (Month): 2 (June)
    Pages: 130-151

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    Handle: RePEc:eee:ememar:v:12:y:2011:i:2:p:130-151

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    Web page: http://www.elsevier.com/locate/inca/620356

    Related research

    Keywords: IPO Underpricing Cost of equity West Africa Agency theory;

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    Cited by:
    1. Munisi, Gibson & Randøy, Trond, 2013. "Corporate governance and company performance across Sub-Saharan African countries," Journal of Economics and Business, Elsevier, Elsevier, vol. 70(C), pages 92-110.
    2. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, Elsevier, vol. 13(2), pages 159-183.
    3. Salim Darmadi & Randy Gunawan, 2013. "Underpricing, board structure, and ownership: An empirical examination of Indonesian IPO firms," Managerial Finance, Emerald Group Publishing, Emerald Group Publishing, vol. 39(2), pages 181-200, January.

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