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

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Show simple item record Brown, Philip en_US Lee, Michael en_US Owen, Sian en_US Walter, Terry en_US
dc.contributor.editor NA en_US 2010-07-13T08:51:15Z 2010-07-13T08:51:15Z 2009 en_US
dc.identifier 2008007230 en_US
dc.identifier.citation Brown Philip et al. 2009, 'Corporate governance and the long-run performance of firms issuing seasoned equity: An Australian study', AFAANZ, Australia, pp. 1-41. en_US
dc.identifier.issn - en_US
dc.identifier.other E1UNSUBMIT en_US
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. en_US
dc.language en_US
dc.publisher AFAANZ en_US
dc.relation.isbasedon en_US
dc.title Corporate governance and the long-run performance of firms issuing seasoned equity: An Australian study en_US
dc.parent AFAANZ 2009 Proceedings website en_US
dc.journal.volume en_US
dc.journal.number en_US
dc.publocation Australia en_US
dc.identifier.startpage 1 en_US
dc.identifier.endpage 41 en_US BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.for 150200 en_US
dc.personcode 0000018515 en_US
dc.personcode 0000063041 en_US
dc.personcode 0000050860 en_US
dc.personcode 104692 en_US
dc.percentage 40 en_US Banking, Finance and Investment 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 20090901 en_US
dc.location.activity Adelaide, Australia en_US
dc.description.keywords Corporate governance, seasoned equity issue, long-run underperformance en_US
dc.staffid 104692 en_US

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