Influence of venture capital, retained ownership and board structure on initial public offering firms - case of France

Djerbi Chiraz and Anis Jarboui

International Journal of Business Excellence, 2016, vol. 10, issue 1, 55-77

Abstract: This study investigates the impact of venture capital (VC), retained ownership and board structure on initial public offering (IPO) in France. Based on a sample of 177 French IPOs over the period 2001-2007, our results show that board independence and VC are negatively and significantly related to the level of underpricing, indicating that these two factors play important roles in mitigating asymmetry information between the issuer and potential investors. Further, this study provides evidence that the level of underpricing is positively associated with board size. However, the CEO duality and retained ownership by insiders are found to be insignificant in explaining the first day returns.

Keywords: initial public offerings; IPOs; venture capital; retained ownership; board structure; IPO underpricing; France; board independence; underpricing; information asymmetry; board size; CEO duality. (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbexc:v:10:y:2016:i:1:p:55-77

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