Do family firms matter in IPO markets? Initial returns performance of family and non-family firms - a critical perspective: Australian evidence Mroczkowski, Nicholas and Tanewski, George 2009, Do family firms matter in IPO markets? Initial returns performance of family and non-family firms - a critical perspective: Australian evidence, International journal of critical accounting, vol. 1, no. 3, pp. 228-261, doi: 10.1504/IJCA.2009.027318. Title Do family firms matter in IPO markets? Initial returns performance of family and non-family firms - a critical perspective: Australian evidence Author(s) Mroczkowski, Nicholas Tanewski, George Journal name International journal of critical accounting Volume number 1 Issue number 3 Start page 228 End page 261 Total pages 34 Publisher Inderscience Publishers Place of publication Olney, Eng. Publication date 2009 ISSN 1757-9848 1757-9856 Summary This study examines the initial price performance of family and non-family controlled IPO firms listed on the Australian Securities Exchange (ASX) between 1988 and 1999. Ownership and control are significant factors that influence managerial incentives, whereas the dynamics underlying family relationships reduce agency costs, improve efficiency and positively impact on firm performance. The study finds evidence of lower (15.54%) initial underpricing on the first day of trading for family firms compared with non-family IPOs (36.12%) after adjusting for industry effects. The results also show a positive and significant association between firm value and fractional ownership for both family and non-family firms, which indicates that family and non-family IPO firms use fractional ownership to signal the value of the firm. These findings provide empirical support for signalling models articulated in the literature. Implications of these differences will allow market participants to make more informed investment choices. For example, investors seeking higher immediate returns might choose to invest in non-family firms rather than in family controlled firms. Language eng DOI 10.1504/IJCA.2009.027318 Field of Research 1501 Accounting, Auditing And Accountability Socio Economic Objective 0 Not Applicable HERDC Research category C1.1 Refereed article in a scholarly journal ERA Research output type C Journal article Copyright notice ©2009, Inderscience Enterprises Ltd. Persistent URL http://hdl.handle.net/10536/DRO/DU:30091017 Document type: Journal Article Collection: Department of Accounting Related Links Link Description Connect to Elements publication management system Go to link with your DU access privileges   Connect to published version Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Thu, 02 Feb 2017, 14:17:58 EST Thu, 02 Feb 2017, 14:18:40 EST Fri, 03 Feb 2017, 04:00:48 EST Fri, 03 Feb 2017, 07:06:44 EST Fri, 24 Feb 2017, 05:06:22 EST Wed, 08 Mar 2017, 12:30:45 EST Wed, 08 Mar 2017, 12:31:50 EST Wed, 08 Mar 2017, 12:34:11 EST Filtered Full Citation counts:   Cited 0 times in TR Web of Science Cited 0 times in Scopus Search Google Scholar Access Statistics: 12 Abstract Views  -  Detailed Statistics Created: Thu, 02 Feb 2017, 14:18:40 EST

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