Corporate Governance and Firm Value for Small and Medium Sized Ipos

Financial Markets and Portfolio Management, Vol. 18, No. 2, pp. 143-159, 2004

Posted: 12 Sep 2005

See all articles by Salim Chahine

Salim Chahine

American University of Beirut - Olayan School of Business

Abstract

This paper proposes to include corporate governance characteristics in the explanation of underpricing at the time of IPOs. It shows that the investment banks and the issuers take the characteristics of the corporate board into account when valuing the issue, while investors adjust for the ownership structure in the aftermarket. Moreover, empirical tests provide some proofs about a simultaneous relation between the initial underpricing and the offer price-to-book, and suggest that price adjustment in the aftermarket includes the board characteristics as valued in the offer price.

JEL Classification: G0, G1

Suggested Citation

Chahine, Salim, Corporate Governance and Firm Value for Small and Medium Sized Ipos. Financial Markets and Portfolio Management, Vol. 18, No. 2, pp. 143-159, 2004. Available at SSRN: https://ssrn.com/abstract=796648

Salim Chahine (Contact Author)

American University of Beirut - Olayan School of Business ( email )

Bliss Street
Beirut 1107 2020
Lebanon
961-1-374-374 (Phone)

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