Title

An Analysis of Factors Affecting Investor Demand for Initial Public Offerings in Singapore

Abstract

This article investigates the impact of fundamentals of initial public offering (IPO) firms on two categories of investors, large and small investors. In the decision to purchase IPOs, the demand by large investors is positively associated with earnings yield, firm size and underpricing, and negatively associated with book-to-market ratio. Large investor demand is higher for issues denominated in the local currency (Singapore dollars) than issues denominated in foreign currencies. In contrast, the demand by small investors is negatively associated with earnings yield, firm size and underpricing. Small investor demand is also lower for issues denominated in Singapore dollars than issues denominated in foreign currencies.

Department(s)

Business and Information Technology

Keywords and Phrases

Fundamentals; Initial Public Offerings; Large Investors; Small Investors

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2000 Global Business Publications, All rights reserved.

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