Independent directors and the long-run performance of IPOs
Independent directors and the long-run performance of IPOs
The Securities and Futures Bureau (SFB) of Taiwan prescribes that firms applying for an initial listing after February 2002 must have at least two seats of independent directors (IDs) on the board. Under the SFB 2002 rules, this paper investigates the effect of such governance reforms in ID requirement on the long-run performance of IPOs. Our results, based on 494 IPOs between 1999 and 2005, find that though IPOs typically underperform in the post-issue period, firms after 2002 perform better th