Post–Initial Public Offering Operating Performance and Its Determinants: Initial Public Offering Characteristics and Corporate Governance Practices

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We examine the post–initial public offering (IPO) operating performance of firms going public in Borsa Istanbul. Covering the period 2007–13 and 102 IPO firms, we find that operating performance indicators except cash flows from operations over total assets decline following the IPOs relative to the pre-IPO year, confirming the previous research, albeit to a lesser extent than in the previous studies. We document that number of intermediaries and intermediation type act as determinants of post-IPO performance measures. We also find evidence suggesting the role of firm-specific corporate governance practices in the post-IPO operating performance.