The Signalling Process in Initial Public Offerings

Author

Francis KOH, Singapore Management UniversityFollow
Young Sain, Joseph LIM, Singapore Management UniversityFollow
Chin Neo

Publication Type

Journal Article

Publication Date

10-1992

Abstract

This study uses a sample of Singapore IPOs to examine the signalling process at the time of a new issue of shares. The multiple regression analysis results support three testable implications of the Grinblatt and Hwang model. We show that (1) the value of the firm is positively related to the fractional holding of the issuer, (2) the degree of underpricing is an increasing function of the variance, and (3) firm value is positively related to the degree of underpricing.

Discipline

Business

Research Areas

Finance

Publication

Asia Pacific Journal of Management

Volume

9

Issue

2

First Page

151

Last Page

165

ISSN

0217-4561

Identifier

10.1007/bf01732893

Publisher

Springer Verlag

Citation

KOH, Francis; LIM, Young Sain, Joseph; and Neo, Chin. The Signalling Process in Initial Public Offerings. (1992). Asia Pacific Journal of Management. 9, (2), 151-165.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/1140