Post-IPO operating performance in India: comprehensive study of financial and non-financial variables

Sharma, S 2018, Post-IPO operating performance in India: comprehensive study of financial and non-financial variables, Doctor of Philosophy (PhD), Accounting, RMIT University.


Document type: Thesis
Collection: Theses

Attached Files
Name Description MIMEType Size
Sharma.pdf Thesis application/pdf 1.78MB
Title Post-IPO operating performance in India: comprehensive study of financial and non-financial variables
Author(s) Sharma, S
Year 2018
Abstract This thesis comprises of three inter-related studies (papers) explaining the relevance of identified information content that is available to the participants during the IPO process in explanation of the outcomes- expected post-IPO operating performance, demand and the valuation of the IPO. The examination of the three identified information content for their relevance using cross-sectional regressions analysis is presented through three studies are: Study 1- Signal relevance of Ownership in explanation of Post-IPO operating performance and Initial returns - An Indian case study, study 2: The signal relevance of Grading of IPO for investors' response, Initial returns, and Post-IPO operating performances, and study 3: Irrelevance of corporate governance practices during the IPO process- An Indian context. This research relies on signaling theory to explain the influence of the information content in explanation of accounting measures, oversubscription and the underpricing that are used as a proxy for the post-IPO operating performance, demand and the valuation of the IPO. The finding of the thesis suggests irrelevance of the management ownership, grading of the IPO and the governance mechanism in explanation of the post-IPO operating performance. The results confirm that investors, the primary stakeholders during the IPO process while supporting the idea of grading an IPO also show their reservation to the grading criteria. The investors convey their support to the idea of grading of an IPO as they are rewarded through increased demand and valuation of graded IPOs as compared to ungraded IPOs. The study observed no difference in demand and valuation between the high and low graded IPOs. This indifference of the investors to the high or low grading conveys that investors also seem to be agreeing with the critics on grading and criteria adopted for that. The significant outcome for the study is the 'the investor's participation in the IPO activity' reflected through oversubscription being relevant in explanation of the post-IPO operating performance and the capital market return during the first day of the IPO listing. Investors decision to participate in IPO must be aggregate of all information content that may include variables yet to be identified by academic research.  The thesis highlights that it is the desire to invest successfully combined with fear of the loss of capital that investors carry in contrast to the academic research that enables them to identify and consolidate such information content available during IPO activity. Such headway on information content that is available to the market during the IPO process should bring stability to the IPO process, an enablement in creating low-cost capital in emerging as well as the developed economies.
Degree Doctor of Philosophy (PhD)
Institution RMIT University
School, Department or Centre Accounting
Subjects Accounting, Auditing and Accountability not elsewhere classified
Keyword(s) IPO
grading of IPO
Signalling theory
India
ownership
Versions
Version Filter Type
Access Statistics: 41 Abstract Views, 72 File Downloads  -  Detailed Statistics
Created: Wed, 06 Feb 2019, 10:51:01 EST by Keely Chapman
© 2014 RMIT Research Repository • Powered by Fez SoftwareContact us