The Effect of Board Size on Underpricing of IPOs: Indian Evidence
The IUP Journal of Corporate Governance, Vol. XIII, No. 3, July 2014, pp. 7-16
Posted: 11 Jun 2015
Date Written: June 10, 2015
Corporate governance mechanisms are being widely researched for their impact on different measures of corporate performance. Board structure being a dominant means of monitoring and governance for sustaining the competition and improving financial and overall performance, forms an integral part of these mechanisms. The present paper explores the size of the board as a governance method and its relationship with Initial Public Offering (IPO) performance, IPOs being a unique setting to establish the contribution of corporate governance in general and boards in specific. The study investigates specifically board size to explore its independence as a governance mechanism and contribution in explaining the initial returns of an IPO.
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