Signal irrelevance of corporate governance practices during Initial Public Offerings in India

Authors

  • Rekha Handa
  • Balwinder Singh
  • Sharad Sharma

Keywords:

Initial Public Offering, Underpricing, corporate governance, Initial Returns

Abstract

A sample of initial public offerings (IPOs) of firms listed on the Bombay Stock Exchange between April 2003 and March 2014 has been used to investigate the relevance of corporate governance in the post-IPO capital market performance. Signal theory has been used to understand the phenomenon of post-IPO capital market performance vis-à-vis signal cast by corporate governance attributes. The study finds investors ’ indifference to governance mechanis m put in place by IPO-firms in compliance with the listing requirements. The outcomes of the study provide essential feedback for IPO-firms and the Security Exchange Board of India, the Indian capital market regulator.

Downloads

Published

2019-06-30

How to Cite

Handa, R. ., Singh, B. ., & Sharma, S. . (2019). Signal irrelevance of corporate governance practices during Initial Public Offerings in India. The Journal of Contemporary Issues in Business and Government, 24(1), 50–63. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/137

Issue

Vol. 24 No. 1 (2019): The journal of contemporary issues in business and government

Section

Articles

License

You are free to:

  1. Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
  2. Adapt — remix, transform, and build upon the material for any purpose, even commercially.
  3. The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  1. Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  2. No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Notices:

You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .

No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.