Investigating the relationship between family ownership and operational performance after the IPO
Keywords:Initial Public Offerings, operating performance, family ownership
The general trend shows that the operating performance before the IPO is better than the IPO year, and the performance continues to decline after the IPO year. The average family ownership percentage is 26.87%, with a minimum of 0% and a maximum of 78%. The average family ownership percentage is higher for small companies (28.07%) than for large companies (24.26%). Among the sectors, the consumer goods sector (n=70) registered the highest mean value of family ownership, with 30.14%, while the construction, real estate and plantations sector (n=37) had the lowest mean value of family ownership, with 21.87%. The analysis revealed two different time periods for post-IPOS performance, namely one year before and one year after IPOS. The second period is the average of three years before and after the IPOS. The result shows that both periods have no significant result.
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