Citation

Sundarasen, Sheela Devi D. and Goel, Sanjay and Ahmad Zulaini, Fairuz (2017) Impact of investors’ protection, transparency level and legal origin on initial public offering (IPO) initial returns. Managerial Finance, 43 (7). pp. 738-760. ISSN 0307-4358

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Abstract

Managers may underprice initial public offerings (IPOs), leading to higher initial returns (IRs). The purpose of this paper is multi-fold: to compensate investors for risk, to reduce litigation risk, as well as to maintain control over the firm. The authors examine country-level contingencies (degree of investor protection, legal origin and degree of transparency) in OECD countries to explain IPO IRs. Cross-sectional data comprising of 4,164 IPOs from 28 OECD countries are used for the period of 2005-2010. Ordinary least square using multiple linear regressions is used to test the hypotheses.

Item Type:	Article
Uncontrolled Keywords:	Initial public offering (IPO), Initial returns, Investors’ protection, Legal origin, Transparency level
Subjects:	H Social Sciences > HG Finance > HG4001-4285 Finance management. Business finance.
Divisions:	Graduate School of Management (GSM)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	26 Oct 2020 22:55
Last Modified:	26 Oct 2020 22:55
URII:	http://shdl.mmu.edu.my/id/eprint/7092

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