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Abstract

Vol. 57, No. 4, pp. 303-313 (2006)

“The Effect of Governance Structure and CEO Characteristics on the Performance of Post-IPO Firms -Evidence from Young Firms in the 1960s-”
Hiroyuki Okamuro (Graduate School of Economics, Hitotsubashi University)

Previous studies on the corporate governance of Japanese firms concentrate on established large companies in the period since 1975 and neglect the effects of CEO characteristics. Using a unique dataset of IPO firms on the second section of the stock exchanges in the 1960s, this paper examines the effects of ownership structure and CEO characteristics on the profitability of emerging middle-sized firms in growing industries during the high-growth period in Japan. The empirical results suggest that both CEO characteristics (age and shareholding) and bank relationships were important success factors for the emerging firms in the 1960s.