The Impact of Corporate Governance Measures on the Performance of West African IPO Firms

Hearn, B. (2011). The impact of corporate governance measures on the performance of West African IPO firms. Emerging Market Review, 12: 130-151

36 Pages Posted: 28 Mar 2022

See all articles by Bruce Allen Hearn

Bruce Allen Hearn

University of Southampton; University of Bradford - School of Management

Multiple version iconThere are 2 versions of this paper

Date Written: February 9, 2011

Abstract

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

Keywords: IPO; Underpricing; Cost of Equity; West Africa; Agency Theory

Suggested Citation

Hearn, Bruce Allen, The Impact of Corporate Governance Measures on the Performance of West African IPO Firms (February 9, 2011). Hearn, B. (2011). The impact of corporate governance measures on the performance of West African IPO firms. Emerging Market Review, 12: 130-151, Available at SSRN: https://ssrn.com/abstract=4030684 or http://dx.doi.org/10.2139/ssrn.4030684

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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