Governing Board Interlocks and Probability of an IPO

Author Name MATSUDA Naoko (Fellow, RIETI) / MATSUO Yutaka (University of Tokyo)
Creation Date/NO. July 2014 14-E-040
Research Project Economic Analysis of Entrepreneurship
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Using comprehensive data of Japanese firms, including small-sized and unlisted firms, this paper empirically analyzes the relationship of initial public offerings (IPOs) and the governing boards. The results show that board size, interlocks with other firms, and interlocks with other listed firms are all positively related to the probability of an IPO. These results imply that a firm's intention to conduct an IPO can be estimated by the size and interlocks of the firm's board, and that knowledge diffusion of an IPO occurs among firms.

This is the English version of the Japanese Discussion Paper (14-J-023) with some additional information and changes.

Published: Matsuda, Naoko, and Yutaka Matsuo, 2016. "Governing board interlocks: As an indicator of an IPO," Corporate Board: role, duties and composition, Vol. 12(3)