Can Governance Help in Making an IPO “Successful”? New Evidence from Europe

31 Pages Posted: 7 Oct 2020

See all articles by Marina Brogi

Marina Brogi

University of Rome I - Dipartimento Banche Assicurazioni Mercati

Valentina Lagasio

Sapienza University

Valerio Pesic

University of Rome I - Department of Management

Date Written: October 2020

Abstract

This paper investigates the determinants of a “successful” IPO from a corporate governance perspective upon a representative sample of European listings from 2000 to 2015. We use an extensive dataset of market performance, financial data, and corporate governance characteristics to run the investigation. Differently from previous studies, our analysis embraces both a short‐term perspective and a medium–long‐term perspective, where the board of directors seems to perform different tasks, moving from a value creation to a value protection strategy. Among the others, we find that board size, board independence, and their qualifications, together with their experience in other boards, are associated with a positive performance of the IPO in a short‐term horizon and in the medium–long‐term period, although significant differences emerge among those time perspectives.

Keywords: Capital Markets Union, Corporate Governance, IPO, stock performance

Suggested Citation

Brogi, Marina and Lagasio, Valentina and Pesic, Valerio, Can Governance Help in Making an IPO “Successful”? New Evidence from Europe (October 2020). Journal of International Financial Management & Accounting, Vol. 31, Issue 3, pp. 239-269, 2020, Available at SSRN: https://ssrn.com/abstract=3705407 or http://dx.doi.org/10.1111/jifm.12116

Marina Brogi (Contact Author)

University of Rome I - Dipartimento Banche Assicurazioni Mercati ( email )

Rome
Italy

Valentina Lagasio

Sapienza University ( email )

Via del Castro Laurenziano, 9
Rome, 00185
Italy

Valerio Pesic

University of Rome I - Department of Management ( email )

Via del Castro Laurenziano, 9
Rome, 00161
Italy

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