Board Busyness and Post-IPO Performance

• Main Authors: Wan Hsin-Chih, 萬欣芝
• Other Authors: Chang Yuan
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/63351046589851220211

碩士 === 國立彰化師範大學 === 財務金融技術學系 === 103 === This paper examines the linkage between the degree of board busyness and the post-IPO performance on stock returns and accounting indicators on newly-listed firms. Based on stock market performance and accounting indicator of IPO firms during 2008~2013 on Taiwan Stock Exchange (TWSE), the paper firstly identified the post-IPO performance of these firm, and then relates the post-IPO performance to the degree of board busyness. To measure firm’s performance after the IPO, 5, 10 and 30 days excess returns after IPO, differences of ROA, ROE, ROS and EPS between pre-IPO and post-IPO period are employed. Board busyness is measured by total and average number of director appointments on board. The univariate outcome shows that post-IPO performance on stock returns and accounting ratio are negative, means that IPO firm on TWSE during 2008~2013 were underperformed. The multivariate analysis result shows that greater degree of board busyness mitigates the degree of underperformance during 2008~2009 but not on 2010~2013, and the result partially supports the view that busy director with greater outside resources and reputation which enhances the efficiency of board monitoring and advising, helps lessen the severity of IPO underperformance. Principal outcome changes little under two-stage estimation to correct for self-selection of board busyness.