Global board reforms and the pricing of IPOs
Cambridge University Press
We document that global board reforms are associated with a significant reduction in IPO underpricing. The effect is amplified for IPOs with greater agency problems and mitigated for IPOs certified by reputable intermediaries, IPOs with greater disclosure specificity, and IPOs in countries with better shareholder protection and stringent financial reporting regulations. Furthermore, global board reforms have led to an improvement in the long-Term market performance, proceeds, and subscription level of IPOs, and have enhanced board independence in the issuing firms. Our findings suggest that global board reforms have strengthened board oversight in the issuing firms, leading to less underpriced IPOs.
Global board reforms , Underpriced IPOs
Chen, Y., Goyal, A. and Zolotoy, L. (2021) 'Global board reforms and the pricing of IPOs', Journal of Financial and Quantitative Analysis. doi: 10.1017/S0022109021000223
© 2021, the Authors. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington. This material is free to view and download for personal use only. Not for re-distribution, re-sale or use in derivative works.