📄 Abstract
This study investigates the multi-dimensional determinants of long-run post-Initial Public Offering (IPO) operating performance across newly listed firms in emerging and transition capital markets, explicitly integrating the interactive roles of corporate governance mechanisms, ownership retention structures, and secondary market liquidity dynamics. Utilizing an empirical panel framework with dynamic system Generalized Method of Moments (GMM) estimators to address unobserved firm heterogeneity and endogeneity, the research evaluates operational trajectories over a five-year post-listing horizon measured by return on assets, operating cash flow margins, and asset turnover. The empirical findings confirm the prevalence of structural post-IPO operational declines, primarily driven by pre-issue earnings management and the dilution of managerial incentives. However, robust corporate governance frameworks—characterized by independent board majority, specialized audit committee oversight, and the strict separation of chief executive and board chair functions—substantially attenuate post-listing performance decay by curbing managerial agency costs and expropriation risks. Furthermore, the econometric analysis reveals a non-linear, inverted U-shaped relationship between original ownership retention and subsequent operational efficiency, indicating that moderate equity retention fosters incentive alignment between controlling insiders and minority shareholders, whereas excessive retention entrenches controlling coalitions and degrades operating discipline. Crucially, secondary market liquidity is demonstrated to function as an active external governance mechanism: high trading liquidity and reduced Amihud illiquidity metrics enhance price discovery, facilitate institutional monitoring, and subject corporate executives to continuous market discipline, thereby sustaining superior operating outcomes. The paper provides comprehensive policy architectures and regulatory recommendations aimed at optimizing post-listing listing rules, strengthening board independence mandates, and enhancing secondary equity liquidity to ensure sustainable corporate growth following public quotation.
🏷️ Keywords
📚 How to Cite:
Babakhanova Nozima Saidakbarovna , THE DETERMINANTS OF POST-IPO LONG-RUN OPERATING PERFORMANCE: CORPORATE GOVERNANCE, OWNERSHIP RETENTION, AND MARKET LIQUIDITY DYNAMICS , Volume 12 , Issue 9, September 2026, International Journal of Global Economic Light (JGEL) , Pages: 1 - 9 , DOI: https://doi.org/10.36713/epra31491