The Performance and the Effects of Family Control in North African IPOs

31 Pages Posted: 14 Feb 2010 Last revised: 7 Aug 2011

See all articles by Bruce Allen Hearn

Bruce Allen Hearn

University of Southampton; University of Bradford - School of Management

Date Written: May 23, 2010


This paper examines the performance effects of family ownership and influence on board structure and its composition in firms that have recently undergone an initial public offering (IPO) in the North African region. Using a unique and comprehensive hand-collected sample of 63 locally listed IPO firm’s from across North Africa we find considerable evidence of a sizeable differential between family and non-family controlled firms. I find considerable evidence supporting increased participation of family members at board level while contrastingly the wider dispersion of family ownership facilitates monitoring and surveillance and mitigates underpricing. Equally in line with the extended network and relationships involved in family firms business angels provide the optimal form of governance in contrast to the more formal private equity and venture capital industry.

Keywords: IPO, Underpricing, Family Firms, North Africa, Agency Theory

Suggested Citation

Hearn, Bruce Allen, The Performance and the Effects of Family Control in North African IPOs (May 23, 2010). International Review of Financial Analysis, Vol. 20, No. 1, 2011, Available at SSRN:

Bruce Allen Hearn (Contact Author)

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

University of Bradford - School of Management ( email )

Emm Lane
Bradford, West Yorkshire Bd9 4JL
United Kingdom

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