The ownership change and IPO firm performance: Evidence from the six emerging markets
File version
Accepted Manuscript (AM)
Author(s)
Alanazi, Ahmed S.
Liu, Benjamin
Griffith University Author(s)
Year published
2015
Metadata
Show full item recordAbstract
This paper investigates the financial and operating performance of IPOs made in the Gulf Cooperation Council (GCC) region for the period of 2003 to 2010. The results suggest that IPO firm performance declines after going public after ownerships are altered in IPOs. The deterioration is associated with the firm transition from private into public ownership perhaps due to increasing agency costs. We also find evidence that supports the lack of opportunity theory because the firm’s growth in sales and capital expenditure in the pre-IPO period is much stronger than the post-IPO period. We also find that size of the firm is ...
View more >This paper investigates the financial and operating performance of IPOs made in the Gulf Cooperation Council (GCC) region for the period of 2003 to 2010. The results suggest that IPO firm performance declines after going public after ownerships are altered in IPOs. The deterioration is associated with the firm transition from private into public ownership perhaps due to increasing agency costs. We also find evidence that supports the lack of opportunity theory because the firm’s growth in sales and capital expenditure in the pre-IPO period is much stronger than the post-IPO period. We also find that size of the firm is positively significant to IPO firm performance.
View less >
View more >This paper investigates the financial and operating performance of IPOs made in the Gulf Cooperation Council (GCC) region for the period of 2003 to 2010. The results suggest that IPO firm performance declines after going public after ownerships are altered in IPOs. The deterioration is associated with the firm transition from private into public ownership perhaps due to increasing agency costs. We also find evidence that supports the lack of opportunity theory because the firm’s growth in sales and capital expenditure in the pre-IPO period is much stronger than the post-IPO period. We also find that size of the firm is positively significant to IPO firm performance.
View less >
Journal Title
Corporate Ownership & Control
Volume
12
Issue
4
Copyright Statement
© 2015 Virtus Interpress. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Accounting, auditing and accountability
Banking, finance and investment
Business systems in context not elsewhere classified