THE EFFECTS OF BANKING RELATIONSHIP, LEGAL ORIGIN, PRIVATE EQUITY AND LEAD MANAGERS ON THE PERFORMANCE OF WEST AFRICAN IPO FIRMS | Zendy

HEARN BRUCE | Zendy

Premium

THE EFFECTS OF BANKING RELATIONSHIP, LEGAL ORIGIN, PRIVATE EQUITY AND LEAD MANAGERS ON THE PERFORMANCE OF WEST AFRICAN IPO FIRMS

Author(s) -

HEARN BRUCE

Publication year - 2011

Publication title -

south african journal of economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.502

H-Index - 31

eISSN - 1813-6982

pISSN - 0038-2280

DOI - 10.1111/j.1813-6982.2011.01285.x

Subject(s) - initial public offering , equity (law) , business , listing (finance) , private equity , lead (geology) , club deal , finance , sample (material) , monetary economics , financial system , accounting , private equity fund , economics , chemistry , chromatography , geomorphology , political science , law , geology

This paper examines the performance effects arising from initial primary offering (IPO) firms retaining their existing bank as a lead manager together with the effects of foreign and domestic lead managers, corporate insiders and private equity investors across West Africa. Using a unique and comprehensive sample of 37 locally listed IPO firm's from across West Africa, I find evidence of a considerable reduction in underpricing and costs of equity in firms listing on civil code as opposed to common law markets. Furthermore, I find evidence that firms employing their existing bank as lead manager have higher costs of equity while the employment of a foreign as opposed to domestic lead manager imparts a reduction in underpricing and cost of equity.

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here

Accelerating Research