Does An IPO Create Better Corporate Governance?: (Empirical Evidence from an Indonesian Islamic Bank)

摘要

This research is aimed to serve as an exploratory research on the impact of IPO on corporate governance practices. Drawn from a content analysis using the ASEAN Corporate Governance Scorecard of an Indonesia Islamic Bank as a case study, the findings show significant changes in the governance score of the bank. The changes mainly come from the aspect of the responsibilities of the board and disclosure and transparency. The increasing voluntary disclosure can be explained by the agency theory that the bank is now facing higher agency problem after going public, thus more information is disclosed to reduce the information asymmetry. Even though generalizability is not the main objective of this study, the findings can provide evidence on how a company responds to a greater pressure from stakeholders, especially the shareholders and investors, after an IPO decision.