Corporate Governance, Ownership Structure, and IPO Underpricing: Evidence from the Indian New Issue Market

Singh, Amit Kumar; Maurya, Sheetal

doi:10.17010/ijrcm/2018/v5/i1/122905

Cited by 8 publications

(8 citation statements)

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“…Murthy and Singh (2016) show that for IPOs listed from the year 2000 to 2003, the long run variables have no relationship with short-run variables. Moreover, in the context of Indian new issues market, Singh and Maurya (2018) in their study concluded that it is the presence of independent directors, rather than non-executive directors, that provides for relevant information with respect to the post IPO returns. Krishnan et al (2011) noted a positive relationship between the image and goodwill of VCbacked IPOs and their long run performance.…”

Section: Performance Of Iposmentioning

confidence: 99%

Do Women on Boards affect Firm's Financial Performance? Evidence from Indian IPO Firms

Singh¹,

Singhania²,

Sardana³

2019

AABFJ

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The objective of this paper is to study whether the presence of women on boards affects the financial performance of firms. This study builds upon other studies that have earlier tried to determine the impact of number of women directors in Indian corporates on their financial performances, in terms of market performance index, i.e. Tobin's Q. The new Companies Act, 2013 has mandated the appointment of at least one woman director in certain classes of listed companies in India as described in Section 149(1)(b), which could possibly bring about a change in the governance and thus the financial performance of firms. The focus of this study is on finding and analysing the impact of compliance with this provision on the financial performance of IPO firms. In order to test our hypotheses, we selected 41 Indian Companies that have made an Initial Public Offer (IPO) in the recent past and have been listed on Bombay Stock Exchange during the period 2012-2016. The performance of each of these firms has been measured in terms of Tobin's Q for 3 successive years after their listing (IPO) as well as by using two gender diversity index values-Blau Index and Shannon index. The study concluded that the proportion of women on board is insignificant and that it could not impact the financial performance of the firms. Neither has it caused any adverse impact on the performance of these firms.

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Section: Performance Of Iposmentioning

confidence: 99%

Do Women on Boards affect Firm's Financial Performance? Evidence from Indian IPO Firms

Singh¹,

Singhania²,

Sardana³

2019

AABFJ

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“…An issue is said to be overpriced when an investor earns a negative listing day return; otherwise, it is said to be underpriced. For this study, when computed for the whole sample, the average turned out to be 11.51 per cent positive returns in proximity to 10.27 per cent as deliberated by Singh and Maurya (2018) (Table 4). A deeper analysis is done with the help of Figure 4.…”

Section: Findings and Discussionmentioning

confidence: 72%

Does Regulation Impact the Initial Returns of Initial Public Offerings? Evidence from Indian Capital Market

Singh

Goel

2022

The Indian Economic Journal

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Regulations are put in place in the capital markets to protect the interests of investors while promoting companies to actively participate in the capital markets. This multidisciplinary study concentrates on analysing the impact of one such regulation, based on entry norms, on the initial returns of book-built IPOs in the presence of firm-related and issue-related control variables, thereby facilitating decision-making to issuers and investors. Using various parametric and non-parametric tests on 259 IPOs issued on Indian Stock Exchanges during financial year 2009–2010 to 2019–2020, it can be concluded that Indian IPOs are underpriced on an average, irrespective of the entry norm followed. Further, firms entering through either of the entry routes, that is, profitability route or Qualified Institutional Buyer Route have significant differences in age, listing delay, type of sale, rank of lead managers and industry. Entry norm is established to have a negative yet insignificant role in determining the initial returns, while oversubscription is the only variable with a positive and significant impact on the initial returns of the issue. JEL Codes: G10, G14, G18, G23, K22

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“…Singh et al (2018) [13] in their Indian study have shown that IPOs on NSE posted a very few gain of 4.63% in case of short run performance as one-month return. Out of 95 IPOs introduced on NSE, (61) 64.21% were underpriced and (33) 34.74% overpriced and there was only one IPO whose issue price was not different from the listing price.…”

Section: Literature Reviewmentioning

confidence: 99%

BFSI sector in India: A study of the post offering performance of IPO

Singh¹,

Attree²,

Singhania³

2018

Int. J. Finance Manage.

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With the advent of the growing financial markets as well as the growth of the BFSI (Banking, Financial services, Insurance) sector owing to wide spread Digitization in the Indian economy, the BFSI sector has become the major sector for raising funds from the Public. The recommendations of the expert committees on the BFSI sector encouraged the BFSI firms to raise funds from the capital market through IPOs, due to the increase in the role of online services such as credit score analysis, fraud detection, automation of loan etc. Out of the seven IPOs in Indian markets in 2018-19, three have been from the BFSI sector including the vastly-oversubscribed IPO of HDFC Asset Management Co. Ltd. The other two BFSI deals were those of Indo Star Capital Finance Ltd and Credit Access Grameen Ltd. This paper concentrates on IPOs from the BFSI sector from the period 2012-2016. In a developing country, the role of the BFSI sector for economic development is undisputed. In view of its importance in economic resource allocation and empirical evidences of IPO underperformance in the developing countries in the background, this paper analyses the BFSI sector IPOs in detail. The IPOs' pre and post listing performances have been evaluated based on certain accounting measures that impact operating performance. As per the results, the key accounting parameters showed improvement in the performance of the BFSI in the post listing period.

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Corporate Governance, Ownership Structure, and IPO Underpricing: Evidence from the Indian New Issue Market

Cited by 8 publications

References 0 publications

Do Women on Boards affect Firm's Financial Performance? Evidence from Indian IPO Firms

Do Women on Boards affect Firm's Financial Performance? Evidence from Indian IPO Firms

Does Regulation Impact the Initial Returns of Initial Public Offerings? Evidence from Indian Capital Market

BFSI sector in India: A study of the post offering performance of IPO

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