Corporate governance, insider ownership and operating performance of Australian initial public offerings

Maria C A Balatbat, Stephen L. Taylor, Terry S. Walter

Research output: Contribution to journalArticlepeer-review

63 Citations (Scopus)

Abstract

We examine ownership structures and corporate governance attributes of 313 Australian initial public offerings (IPOs) between 1976 and 1993 and their relation with up to 5 years of post-listing operating performance, adjusted for similar (non-IPO) firms. Consistent with prior share price-based evidence, we find that the operating performance of Australian IPOs typically deteriorates over the first 4 post-listing years. Any evidence of a positive association between insider ownership and firm performance is confined to the fourth and fifth years after the IPO. Evidence of a positive relation between institutional ownership and performance is restricted to the latter part of our 5-year post-listing window. Board composition (i.e. outsider versus insider control) is not associated with operating performance, although there is some evidence that independent board leadership is associated with better operating performance.

Original languageEnglish
Pages (from-to)299-328
Number of pages30
JournalAccounting and Finance
Volume44
Issue number3
DOIs
Publication statusPublished - Nov 2004

Keywords

  • Corporate governance
  • Initial public offerings
  • Insider ownership
  • Operating performance

Fingerprint

Dive into the research topics of 'Corporate governance, insider ownership and operating performance of Australian initial public offerings'. Together they form a unique fingerprint.

Cite this