The impacts of post-initial public offering on company performance: Evidence from companies that got listed from 2001 to 2005

This study examines the impacts of post-initial public offering on performance of companies that got listed from 2001-2005. The researchers focused on the predicting power of the changes in two governance mechanisms, namely, board structure and ownership structure on firm performance from 2006-2010. Earnings per share and market to book value were used as measures fo company performance. Using panel data, the results have shown that CEO duality, firm age, firm size, firm leverage, and years listed positively affect earnings per share while board size and insider ownership negatively affects EPS. The results have also shown that stock price volatility and years listed positively affect market to book value, while CEO duality and firm size negatively affect the MTBV. Furthermore, board composition was also taken into consideration as this measures the qualitative effect that might affect firm performance that the other governance mechanism wasn\u27t able to cover