The Signalling Process in Initial Public Offerings

Author

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

Publication Type

Conference Paper

Publication Date

9-1991

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

Asian Studies | Finance and Financial Management

Research Areas

Finance

Publication

Proceedings of the Second International Conference on Asia Pacific Financial Markets

First Page

563

Last Page

573

Citation

KOH, Francis; LIM, Young Sain, Joseph; and NEO, Chin. The Signalling Process in Initial Public Offerings. (1991). Proceedings of the Second International Conference on Asia Pacific Financial Markets. 563-573.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/1218