Corporate governance and the long-run performance of firms issuing seasoned equity: An Australian study

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dc.contributor.author Brown, PR
dc.contributor.author Lee, M
dc.contributor.author Owen, S
dc.contributor.author Walter, TS
dc.contributor.editor NA
dc.date.accessioned 2010-07-13T08:51:15Z
dc.date.issued 2009-01
dc.identifier.citation AFAANZ 2009 Proceedings website, 2009, pp. 1 - 41
dc.identifier.other E1UNSUBMIT en_US
dc.identifier.uri http://hdl.handle.net/10453/12722
dc.description.abstract Corporate governance has been propelled to the forefront of contemporary business thinking by a string of high profile corporate collapses and dramatic regulatory responses in the United States, Australia and in other countries as well. A particularly extensive body of research has emerged surrounding the relationship between corporate governance and firm performance. We combine the governance literature with evidence on the long-term underperformance of firms issuing seasoned equity to examine the benefits of corporate governance in a setting where it is more likely to matter. That is, we address the question, Does good corporate governance mitigate post-issue underperformance? For a broad sample of Australian seasoned equity offerings and employing a comprehensive, self-constructed governance database, we first demonstrate that issuing firms substantially underperform a variety of benchmarks over the long term, confirming similar findings in the existing literature. We then find evidence that better-governed firms do not experience the same degree of post-issue underperformance. Our findings, which are robust to a variety of estimation methods and econometric specifications, are consistent with the windows of opportunity hypothesis and with equity raisings being an important channel through which better corporate governance can improve future performance.
dc.format Scott McWhirter
dc.publisher AFAANZ
dc.title Corporate governance and the long-run performance of firms issuing seasoned equity: An Australian study
dc.type Conference Proceeding
dc.parent AFAANZ 2009 Proceedings website
dc.journal.number en_US
dc.publocation Australia en_US
dc.identifier.startpage 1 en_US
dc.identifier.endpage 41 en_US
dc.cauo.name BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.conference Accounting and Finance Association of Australia and New Zealand Conference
dc.for 0806 Information Systems
dc.personcode 104692
dc.percentage 100 en_US
dc.classification.name Information Systems en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom Accounting and Finance Association of Australia and New Zealand Conference en_US
dc.date.activity 20090901 en_US
dc.date.activity 2009-09-01
dc.location.activity Adelaide, Australia en_US
dc.description.keywords Corporate governance, seasoned equity issue, long-run underperformance en_US
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/Finance
utslib.copyright.status Open Access
utslib.copyright.date 2015-04-15 12:23:47.074767+10
utslib.collection.history General (ID: 2)


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