Is there useful information in the ‘use of proceeds’ disclosures in IPO prospectuses?
type="main" xml:id="acfi12013-abs-0001"> <title type="main">Abstract</title> <p>This study contributes evidence on the valuation relevance of the ‘use of proceeds’ disclosure in the initial public offering (IPO) prospectus. This article develops a classification of ‘use of proceeds’ disclosures that aims to capture information embedded in the disclosures relating to the purpose (growth, production, financing) and amount committed to specific assets. These measures are then related to IPO underpricing, survival prediction and expected and realised prospects of the IPOs. The results suggest the ‘use of proceeds’ disclosure categories have incremental information over other sources of information for underpricing, for predicting firm survival and in the case of some disclosure categories, for investors’ evaluation of the firms’ prospects and risks in the early years after listing.
Year of publication: |
2014
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Authors: | Wyatt, Anne ; Cahan, Steven |
Published in: |
Accounting and Finance. - Accounting and Finance Association of Australia and New Zealand - AFAANZ, ISSN 0810-5391. - Vol. 54.2014, 2, p. 625-667
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Publisher: |
Accounting and Finance Association of Australia and New Zealand - AFAANZ |
Saved in:
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