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.
Recommended Citation
Eng, L., & Aw, H. S. (2000). An Analysis of Factors Affecting Investor Demand for Initial Public Offerings in Singapore. Multinational Finance Journal Global Business Publications.
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.
Publication Date
01 Jan 2000