The impact of post-IPO changes in corporate governance mechanisms on firm performance: evidence from young Australian firms

Biplob Chowdhury (), Mardi Dungey and Thu Phuong Pham ()
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Biplob Chowdhury: University of Tasmania, Tasmanian School of Business and Economics, http://www.utas.edu.au/business-and-economics/

No 2014-11, Working Papers from University of Tasmania, Tasmanian School of Business and Economics

Abstract: This paper examines the potential impact of governance mechanisms (top management team structure and board composition) on post-IPO performance of young Australian firms from 2002-2007. We find that change in board of directors and TMT membership significantly affects firm performance. The higher proportion of the IPO original board remains, the better performance. An analogous relationship between the proportion of original TMT members and firm performance is also documented. Our study reveals that both original TMT and board members have a significant effect on both short-term and long-term IPO performance. We conclude that the retention of both the original directors and TMT members is favourable to young IPO firms and their post-IPO performance.

Keywords: Corporate governance; board composition; top management teams; young firms; post-IPO performance (search for similar items in EconPapers)
JEL-codes: G30 G32 L25 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2014-10-04, Revised 2014-09-24
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-cse and nep-ent
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Published by the University of Tasmania. Discussion paper 2014-11

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Persistent link: https://EconPapers.repec.org/RePEc:tas:wpaper:201411

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