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Firm resources and quality signalling: evidence from UK initial public offerings

  • Beat Reber
  • Bob Berry
  • Steve Toms

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.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/0960310042000323610
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Article provided by Taylor & Francis Journals in its journal Applied Financial Economics.

Volume (Year): 15 (2005)
Issue (Month): 8 ()
Pages: 575-586

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Handle: RePEc:taf:apfiec:v:15:y:2005:i:8:p:575-586
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