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

By Bruce Hearn


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

Topics: IPO, Underpricing, Cost of equity, West Africa, Agency theory
Publisher: Elsevier
Year: 2011
DOI identifier: 10.1016/j.ememar.2011.02.004
OAI identifier:

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