 The impact of shareholders and creditors rights on IPO performance: An international studySusanne Espenlaub, Abhinav Goyal () and Abdulkadir Mohamed The British Accounting Review, 2020, vol. 52, issue 1 Abstract: This paper examines the impact of cross-country variation in shareholders' and debt holders' rights on post-IPO performance and survival of newly listed stocks across the globe. Using a sample of 10,490 initial public offerings (IPOs) in 40 countries between 2000 and 2013, we find that post-IPO performance and survival is better in countries with stronger shareholder protection, but the impact of creditor protection is negative i.e. stronger creditor protection leads to poor post-IPO performance and survival. This effect is driven by rules requiring creditors’ consent for company reorganization and the mandatory replacement of incumbent managers. Reputable IPO advisors exacerbate the positive impact of shareholder rights and the negative impact of creditor rights. Keywords: Investor protection; Shareholder rights; Anti-director rights index (ADRI); Creditor rights; IPO delisting; Long-term performance; Security law (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:52:y:2020:i:1:s0890838919300976 DOI: 10.1016/j.bar.2019.100872 Access Statistics for this article The British Accounting Review is currently edited by Nathan Lael Joseph and Alan Lowe More articles in The British Accounting Review from Elsevier |
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