Record Details

Offer Document Disclosures and its Impact on Equity Return in India

International Journal of Management and Information Technology

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Field Value
 
Title Offer Document Disclosures and its Impact on Equity Return in India
 
Creator Singh, Swinder
 
Subject SEBI;Net worth ;Equity shareholders; Equity Issues
 
Description Primary market investors deploy their surplus funds inequity issues on the basis of disclosures made by the issuer companies in their offer documents. An attempt has been made in the present study to measure the impact of offer document disclosures regarding turnover, total assets, net worth, earnings per share, book value, percentage of dividend paid, age, promoters’ stake in post-issue capital and issue size on equity return in India. Taking a sample of 97 equity issues of the size of Rs. 10 crore or more of closely held unlisted companies belonging to 5 different industries during a period of 12 years from 1992-93 to 2003-04 and after applying Linear Multiple Regression Analysis, the study finds that the offer document disclosures covered by the study explained significant amount of variation in equity return in case of issues of banking as well as finance and investment industry. Disclosure of turnover in case of issues of finance and investment industry and of net worth and earnings per share in case of issues ofpharmaceutical industry establishedits statistically significant impact on equity return during the period covered by the study. The industry-wise performancerevealed that the equity issues of banking industry proved more beneficial for long-term investors whereas the issues of IT industry remained more profitable for short-term investors. The study reported that the equity issuesof finance and investment industryprovided less initial return and highest negative return to the investors after three years from first trading day of the issues on Bombay Stock Exchange
 
Publisher CIRWORLD
 
Date 2007-12-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://cirworld.com/index.php/ijmit/article/view/1408
 
Source INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY; Vol 2 No 1; 31-45
2278-5612
 
Language eng
 
Relation https://cirworld.com/index.php/ijmit/article/view/1408/1372
 
Rights Copyright (c) 2012 INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY
http://creativecommons.org/licenses/by/4.0