Espenlaub, S, Goyal, A and Mohamed, A orcid.org/0000-0002-2974-9467 (2020) The impact of shareholders and creditors rights on IPO performance: An international study. British Accounting Review, 52 (1). 100872. ISSN 0890-8389
Abstract
This paper examines the impact of cross-country variation in shareholders' and debt holders' rights on post-IPO performance and survival of newly listed stocks across the globe. Using a sample of 10,490 initial public offerings (IPOs) in 40 countries between 2000 and 2013, we find that post-IPO performance and survival is better in countries with stronger shareholder protection, but the impact of creditor protection is negative i.e. stronger creditor protection leads to poor post-IPO performance and survival. This effect is driven by rules requiring creditors’ consent for company reorganization and the mandatory replacement of incumbent managers. Reputable IPO advisors exacerbate the positive impact of shareholder rights and the negative impact of creditor rights.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Published by Elsevier Ltd. All rights reserved. This is an author produced version of an article published in British Accounting Review. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | investor protection; shareholder rights; anti-director rights index (ADRI); creditor rights; IPO delisting; long-term performance; security law |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 09 Dec 2019 10:25 |
Last Modified: | 09 Nov 2021 01:38 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.bar.2019.100872 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:154287 |