Title: Does the board of directors' characteristics affect the amount of capital raised in IPO?

Authors: Elżbieta Bukalska; Anna Wawryszuk-Misztal

Addresses: Department of Corporate Finance and Accounting, Faculty of Economics, Maria Curie Sklodowska University, Pl. M. Curie-Skłodowskiej 5, 20-031 Lublin, Poland ' Department of Corporate Finance and Accounting, Faculty of Economics, Maria Curie Sklodowska University, Pl. M. Curie-Skłodowskiej 5, 20-031 Lublin, Poland

Abstract: Attracting the interest of investors and gaining capital during the initial public offering (IPO) is the most important task that a company faces while going public. Management board diversity is the tool that company use to signal their value. The aim of this study is to analyse the relation between the management board composition and the amount of capital gained by Polish non-financial companies going public on the Warsaw Stock Exchange over the period of 2006-2018. The results of multivariate regression analysis show that larger board size and higher level of board diversity in terms of age are statistically significant and are positively associated with the amount of capital raised in IPO by companies. Still, board gender diversity is not an important factor explaining IPO proceeds. Our study reveals that control variables such as company size and listing delay, but not profitability, are correlated with the dependent variable.

Keywords: IPO proceeds; corporate governance; management board diversity.

DOI: 10.1504/IJEPEE.2021.113589

International Journal of Economic Policy in Emerging Economies, 2021 Vol.14 No.2, pp.121 - 135

Received: 17 Sep 2019
Accepted: 17 Feb 2020
Published online: 12 Mar 2021 *

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