Director experience and the performance of IPOs: Evidence from Sweden
2014 (English)In: Australasian Accounting Business and Finance Journal, ISSN 1834-2000, E-ISSN 1834-2019, Vol. 8, no 1, 3-24 p.Article in journal (Refereed) Published
An initial public offering (IPO) represents one of the final stages in the life of a small firm as it transitions from private to public. In this paper the experience of directors is examined to determine the extent of the role they play in ensuring a successful listing. Unique data from 122 IPOs on the Swedish Stock Exchange have been examined in a search for the effect of director experience on aftermarket performance. Specific aspects of director experience within a board, such as interlocking directorships and average tenure, are connected to the underpricing of Swedish IPOs. Contrary to expectations, no statistically significant relationship was found between long-run aftermarket performance and director experience at the time of an IPO. This suggests that the previous experience of directors, as measured in earlier studies, is less relevant to long-term aftermarket performance in Sweden. This stresses the importance of examining different institutional contexts.
Place, publisher, year, edition, pages
Wollongong: University of Wollongong , 2014. Vol. 8, no 1, 3-24 p.
Initial Public Offerings, IPO, The Board of Directors, Corporate Governance, Underpricing, Aftermarket Performance
Research subject Business Studies
IdentifiersURN: urn:nbn:se:umu:diva-54653DOI: 10.14453/aabfj.v8i1.2OAI: oai:DiVA.org:umu-54653DiVA: diva2:524815
Working paper also available at www.sirp.se(SIRP WP 12-4)2012-05-072012-05-032014-12-18Bibliographically approved