Corporate Governance in IPOs

Igor Filatotchev, Deborah Allcock

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

It is increasingly recognized in the management literature that the initial public offering (IPO) is an important stage in the life cycle of privately held and entrepreneurial firms. At this critical juncture, a firm has overcome the first challenges of its entrepreneurial phase and entered a growth stage. As Fama and French ( 2004 : 229) emphasize, an IPO “is the point of entry that gives firms expanded access to equity capital, allowing them to emerge and grow.” An IPO can provide an entrepreneurial firm with critical resources for its future expansion. It can also provide the entrepreneur with the first substantive access to cash from their investment of time and resources in the entrepreneurial effort.

Despite the growing awareness of the importance of IPOs among both academics and the investor community, the process by which a privately held fi rm transforms itself into a publicly traded company is still not well understood. While numerous studies have investigated the determinants of the going public decision (e.g. Booth and Smith, 1986; Jain and Kini, 1999 ) and post-issue performance (e.g. Beatty and Ritter, 1986 ; Brav, Geczy, and Gompers, 2000 ; Espenlaub and Tonks, 1998 ; Michaely and Shaw, 1994 ), there is relatively little research on the related but equally important issue of what factors influence the corporate governance mechanism of a fi rm at IPO stage, and how the specific characteristics of this mechanism such as board composition, executive incentives,and ownership interests of private equity investors may aff ect the IPO’s performance.
LanguageEnglish
Title of host publicationThe Oxford Handbook of Corporate Governance
Subtitle of host publicationOxford Handbooks in Business and Management
EditorsMike Wright, Donald S. Siegel, Kevin Keasey, Igor Filatotchev
Place of PublicationOxford
PublisherOxford University Press
Chapter19
Pages421-448
Number of pages28
ISBN (Print)9780199642007
Publication statusPublished - Mar 2013

Publication series

NameOxford Handbooks in Business and Management
PublisherOxford University Press

Fingerprint

Corporate governance
Initial public offerings
Resources
Entrepreneurial firms
Investors
Going public
Board composition
Ownership
Private equity
Influence factors
Life cycle
Cash
Entrepreneurs
Equity capital
Incentives
Corporate governance mechanisms

Cite this

Filatotchev, I., & Allcock, D. (2013). Corporate Governance in IPOs. In M. Wright, D. S. Siegel, K. Keasey, & I. Filatotchev (Eds.), The Oxford Handbook of Corporate Governance: Oxford Handbooks in Business and Management (pp. 421-448). (Oxford Handbooks in Business and Management). Oxford: Oxford University Press.
Filatotchev, Igor ; Allcock, Deborah. / Corporate Governance in IPOs. The Oxford Handbook of Corporate Governance: Oxford Handbooks in Business and Management. editor / Mike Wright ; Donald S. Siegel ; Kevin Keasey ; Igor Filatotchev. Oxford : Oxford University Press, 2013. pp. 421-448 (Oxford Handbooks in Business and Management).
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Filatotchev, I & Allcock, D 2013, Corporate Governance in IPOs. in M Wright, DS Siegel, K Keasey & I Filatotchev (eds), The Oxford Handbook of Corporate Governance: Oxford Handbooks in Business and Management. Oxford Handbooks in Business and Management, Oxford University Press, Oxford, pp. 421-448.

Corporate Governance in IPOs. / Filatotchev, Igor; Allcock, Deborah.

The Oxford Handbook of Corporate Governance: Oxford Handbooks in Business and Management. ed. / Mike Wright; Donald S. Siegel; Kevin Keasey; Igor Filatotchev. Oxford : Oxford University Press, 2013. p. 421-448 (Oxford Handbooks in Business and Management).

Research output: Chapter in Book/Report/Conference proceedingChapter

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Filatotchev I, Allcock D. Corporate Governance in IPOs. In Wright M, Siegel DS, Keasey K, Filatotchev I, editors, The Oxford Handbook of Corporate Governance: Oxford Handbooks in Business and Management. Oxford: Oxford University Press. 2013. p. 421-448. (Oxford Handbooks in Business and Management).