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Asymmetric information within Initial Public Offerings
[Asymetrická informace při primárních emisích akcií]

Author

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  • Monika Janičíková

Abstract

Asymmetric information is a part of market failure. It leads to market imperfections and inefficiency of economic markets. We can meet serious asymmetric information in initial public offerings when companies go public. In IPO process, better-informed party can take an advantage considering new potential investors. Asymmetric information could be identified in IPO timing decisions and we can analyze it by effects on underpricing and underperformance factors. This study deals with asymmetric information's influence on IPO timing, signaling in IPO and underperformance of IPO.

Suggested Citation

  • Monika Janičíková, 2014. "Asymmetric information within Initial Public Offerings [Asymetrická informace při primárních emisích akcií]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(2), pages 81-91.
    • Handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:2:id:396:p:81-91
    DOI: 10.18267/j.cfuc.396
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    References listed on IDEAS

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    More about this item

    Keywords

    Asymmetric Information; Underpricing; Long-run Underperformance; Informační asymetrie; Podhodnocení emisního kurzu; Dlouhodobě nižší výkonnost;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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