Firm Resources and Quality Signalling: Evidence from UK Initial Public Offerings

Posted: 4 Nov 2009

See all articles by Bob Berry

Bob Berry

Nottingham University Business School

Beat Reber

Nottingham Business School

Steve Toms

University of Leeds - Leeds University Business School (LUBS); University of Leeds - Division of Accounting and Finance

Date Written: 2005

Abstract

This study examines the relative importance of financial structure, advisers' reputations, and managerial experience on the market value achieved by an initial public offering (IPO). A sample of 172 UK IPOs on the Official list of the London Stock Exchange during the period 1992–1996 indicates that the extent to which existing owners keep a stake in the business, and managerial expertise at board level, have a significant impact on the performance of the IPO. Advisers' reputations appear to be irrelevant. The findings are comparable to recent studies that cover a similar sample period.(Publication abstract)

Keywords: London Stock Exchange, Advisors, Initial public offerings (IPO), Firm management, Market value, Business counseling, Boards of directors, Experience, Firm image, Operator ownership

Suggested Citation

Berry, Bob and Reber, Beat and Toms, Steve, Firm Resources and Quality Signalling: Evidence from UK Initial Public Offerings (2005). Applied Financial Economics, Vol. 15, Issue 8, p. 575-586 2005. Available at SSRN: https://ssrn.com/abstract=1498280

Bob Berry (Contact Author)

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

Beat Reber

Nottingham Business School ( email )

Burton Street
NG1 4BU Nottingham
United Kingdom

Steve Toms

University of Leeds - Leeds University Business School (LUBS) ( email )

Leeds LS2 9JT
United Kingdom

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom

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