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.

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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

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