IPO UNDERPRICING AND AUDIT QUALITY: EVIDENCE FROM THE ALTERNATIVE INVESTMENT MARKET IN THE UK

Corporate Board: Role, Duties & Composition

Mohammad Muflih Alhadab¹ 

关键词: Audit Quality;    Initial Public Offerings;    IPO Underpricing;    AIM Market;   

DOI  :  10.22495/cbv12i2c1art5

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

This paper aims to investigate the relationship between audit quality and IPO underpricing for IPO firms that went public on the Alternative Investment Market (AIM) of the London Stock Exchange in the UK. Prior research has examined this relationship; however, there has been no work investigates this relation for IPO firms that went public on the AIM market. Based on a sample of 413 IPOs, the findings of the current study reassure prior literature that high quality auditors are associated with a lower level of IPO underpricing. The findings show that high quality audit firms help to reduce the level of information asymmetry around the IPO and, therefore, this leads to reduce the level of IPO underpricing. Further, size, liquidity ratio, and high litigation industries are found to contribute the IPO underpricing on the AIM market.

【 授权许可】

CC BY-NC