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

Authors

  •   Amit Kumar Singh Associate Professor, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi - 110 007
  •   Sheetal Maurya Research Scholar, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi - 110 007

DOI:

https://doi.org/10.17010/ijrcm/2018/v5/i1/122905

Keywords:

Corporate Governance

, IPO Underpricing, Quality of Board, Informational Asymmetry, Signalling Theory

G14

, G15, G30, G32

Paper Submission Date

, November 21, 2017, Paper sent back for Revision, February 22, 2018, Paper Acceptance Date, March 30, 2018.

Abstract

This paper attempted to contribute to extant literature on IPO underpricing by examining the effect of corporate governance on IPO underpricing. Although, previous research in the field of corporate governance has already studied the role of effective corporate governance on several fronts, the role of corporate governance in abating information asymmetry and thereby signalling the value of firms to potential investors is an area that is yet to be explored (particularly in context of Indian new issue market). The results of the present study indicated that presence of independent directors on board was more informative than presence of non-executive directors ; also, merely meeting the regulatory requirement while determining the board composition did not send a quality signal. The results revealed that only those firms which go beyond the minimum regulatory requirements pertaining to corporate governance norms catch some attention of investors.

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Published

2018-03-01

How to Cite

Singh, A. K., & Maurya, S. (2018). Corporate Governance, Ownership Structure, and IPO Underpricing: Evidence from the Indian New Issue Market. Indian Journal of Research in Capital Markets, 5(1), 7–24. https://doi.org/10.17010/ijrcm/2018/v5/i1/122905

Issue

Volume 5, Issue 1, January-March 2018

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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