期刊名称：International Journal of Finance and Accounting
印刷版ISSN：2168-4812
电子版ISSN：2168-4820
出版年度：2014
卷号：3
期号：5
页码：277-285
DOI：10.5923/j.ijfa.20140305.01
语种：English
出版社：Scientific & Academic Publishing Co.
摘要：Importance of prospectus cannot be ignored in any public issue. In India there is a set of guidelines, which has to be followed by the issuer in context of prospectus document. These guidelines were formulated by Securities Exchange Board of India (SEBI) to make the firm specific information equally available to different groups of investors and to minimize the information asymmetry. Information asymmetry contributes to ex-ante uncertainty. Ex-ante uncertainty around equity issue spurs underpricing. The objective of the study was to examine the impact of firm specific characteristics on underpricing. Out of various proxies of ex-anteuncertainty; age of firm, turnover, pre IPO leverage; share held by promoters recognised as firm specific characteristics with reference to objective of the study. Initial public offers that were floated from 2007 to 2012 sampled for the purpose of the study. Using multiple regression techniques it was found that age of firm, pre IPO leverage, turnover as well as fraction of share held by the promoter’s of private sector firms in India do not have any statistically significant impact on the level of undepricing. Findings of the present study are quite contradictory to the findings of Ritter (1984), however similar to the findings emerged from the studies (Sahoo & Prabina, 2012; Jain & Padamavati, 2012) that have already been conducted in Indian context. It is concluded that, although firm specific characteristic have correlation with initial day return but firm specific characteristics, do not cause any statistical significant impact on underpricing. On the other hand statistical findings of the present study, have justified the initiative and efforts of SEBI in minimization of information asymmetry at the public issue of equity instruments.
关键词：Ex-ante uncertainty; Underpricing; Initial public offer
