Capital Markets & Corporate Governance
This research area examines the capital market consequences of major corporate actions and the effectiveness of internal and external governance mechanisms. I explore classic market puzzles and how governance structures bridge the gap between corporate policy and market outcomes.
Featured Article
M. S. Islam, & S. Anwar (2019). “Post-Initial Public Offering Performance Drift.” The Bangladesh Development Studies.
The long-run underperformance of firms following an Initial Public Offering (IPO) is a well-documented puzzle in financial economics. This study provided one of the first comprehensive analyses of this phenomenon in the context of the Bangladesh capital market. We sought to determine whether the “IPO anomaly” holds true in a rapidly emerging market with its own unique institutional features. Our analysis of operating and stock return data revealed a significant post-IPO performance drift, consistent with findings in more developed markets. This suggests that issues like initial over-optimism and information asymmetry at the time of the offering have a lasting impact on firm valuation, irrespective of market maturity.