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

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  • Beat Reber
  • Bob Berry
  • Steve Toms

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.

Suggested Citation

  • Beat Reber & Bob Berry & Steve Toms, 2005. "Firm resources and quality signalling: evidence from UK initial public offerings," Applied Financial Economics, Taylor & Francis Journals, vol. 15(8), pages 575-586.
    • Handle: RePEc:taf:apfiec:v:15:y:2005:i:8:p:575-586
    DOI: 10.1080/0960310042000323610
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    Cited by:

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    2. Robert Brooks & Tim Fry & William Dimovski & Sandra Mihajilo, 2009. "A duration analysis of the time from prospectus to listing for Australian initial public offerings," Applied Financial Economics, Taylor & Francis Journals, vol. 19(3), pages 183-190.
    3. Shiguang Ma, 2007. "Information asymmetry and valuation uncertainty, the determination of China's IPO allocation procedures," Applied Financial Economics, Taylor & Francis Journals, vol. 17(4), pages 271-284.
    4. Paula Hill, 2007. "Declared investment plans and IPO firm value," Applied Financial Economics, Taylor & Francis Journals, vol. 18(1), pages 23-39.

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