Do IPOs in Countries Where Firms Have High Family Control Benefit from More Prestigious Underwriters

Multinational Business Review, Vol. 16, No. 2, Special Issue, 2009

Posted: 13 Jan 2009

See all articles by Kuntara Pukthuanthong

Kuntara Pukthuanthong

University of Missouri, Columbia

Thomas John Walker

Concordia University, Quebec - Department of Finance

Date Written: January 13, 2009

Abstract

We study the relationship between underwriter prestige, family control, and IPO underpricing in an international setting. Data are collected for 5,789 firms that went public across twenty-five countries between 1995 and 2002. We find that non-penny-stock and non-U.S. IPOs from countries where firms are predominately family-controlled benefit from associations with well-known investment bankers; i.e., these firms are less underpriced than similar firms from countries with a low level of family control. At the same time, our findings support prior evidence that suggests that underwriter prestige is positively related to underpricing in the U.S. IPO market. Family-controlled firms should consider the findings of this study, which identifies factors that are associated with more successful IPO outcomes.

Keywords: Initial Public Offerings, Family

JEL Classification: G1

Suggested Citation

Pukthuanthong, Kuntara and Walker, Thomas John, Do IPOs in Countries Where Firms Have High Family Control Benefit from More Prestigious Underwriters (January 13, 2009). Multinational Business Review, Vol. 16, No. 2, Special Issue, 2009, Available at SSRN: https://ssrn.com/abstract=1326784

Kuntara Pukthuanthong (Contact Author)

University of Missouri, Columbia ( email )

Robert J. Trulaske, Sr. College of Business
403 Cornell Hall
Columbia, MO 65211
United States
6198076124 (Phone)

HOME PAGE: https://www.kuntara.net/

Thomas John Walker

Concordia University, Quebec - Department of Finance ( email )

Montreal, Quebec H3G 1M8
Canada

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