The Impact of Board Structure on New Initial Public Offering Companies’ Survival
The Impact of Board Structure on New Initial Public Offering Companies’ Survival

Summary/Abstract: Corporate governance beliefs generally employ the recreation of an essential role to determine business bankruptcy. Our research objective is to examine the relation between corporate governance related to the board structure and the bankruptcy of Thai IPO (Initial Public Offering) companies based on agencytheory. In this paper, we evaluate 272 companies consisting of 250 survivors and 22 non- survivors. We use the survival analysis by Cox and the proportional hazards technique to find a predictable bankruptcy pattern using our hypotheses. Our results indicate that the board size, the proportion of independent board members, the proportion of board committees, the leadership structure, the ownership concentration and the company age are statistically significant factors in decreasing the hazard of IPO bankruptcy. Otherwise, ownership concentration alone has an increasing risk effect on IPOs bankruptcy.

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