Publication: Ownership Structure and Initial Public Offerings
Date
2003-07
ISSN
Published
2003-07
Author(s)
Abstract
The authors study the relationship
between ownership structure, corporate governance, and the
initial public offering (IPO) process. They examine equity
ownership by different institutions, such as foreign and
domestic financial institutions, banks with and without
lending relationships, venture capitalists, and corporations
prior to an IPO. The authors also analyze the relationship
between ownership structure and corporate governance. They
use a unique dataset of 152 Indian IPOs during the period
1999-2001 to analyze ownership of shares by main groups of
shareholders. The authors find a relationship between
ownership structure and firm-specific factors such as sales,
leverage, and profitability, and IPO characteristics such as
percentage of equity locked up, gross proceeds, and exchange
of listing. There is also a strong relationship between
ownership by different types of institutions. Ownership is
also tied to bank lending relationships. Finally, the
authors find strong relationships between ownership types
and corporate governance. For example, firms with foreign
investors are more likely to have an outside chief executive
officer and offer an employee stock option plan.
Link to Data Set
Citation
“Aggarwal, Reena; Klapper, Leora. 2003. Ownership Structure and Initial Public Offerings. Policy Research Working Paper;No. 3103. © World Bank, Washington, DC. http://hdl.handle.net/10986/18150 License: CC BY 3.0 IGO.”
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