Director Experience and the Performance of IPOs: Evidence from Sweden
Journal article, 2014

An initial public offering (IPO) represents one of the final stages in the life of a small firm as it transitions from private to public. In this paper the experience of directors is examined to determine the extent of the role they play in ensuring a successful listing. Unique data from 122 IPOs on the Swedish Stock Exchange have been examined in a search for the effect of director experience on aftermarket performance. Specific aspects of director experience within a board, such as interlocking directorships and average tenure, are connected to the underpricing of Swedish IPOs. Contrary to expectations, no statistically significant relationship was found between long-run aftermarket performance and director experience at the time of an IPO. This suggests that the previous experience of directors, as measured in earlier studies, is less relevant to long-term aftermarket performance in Sweden compared to other countries studied in the literature review. This emphasises the importance of examining different institutional contexts.

Corporate Governance

Initial Public Offerings

Aftermarket Performance

The Board of Directors



Anna Thorsell

Umeå University

Anders Isaksson

Umeå University

Chalmers, Technology Management and Economics, Supply and Operations Management

Australasian Accounting, Business and Finance Journal

1834-2000 (ISSN) 1834-2019 (eISSN)

Vol. 8 1 1-25

Subject Categories

Business Administration



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