Valuing New Issues: Information Quality of Initial Public Offerings at the Amsterdam Stock Exchange
An initial public offering is a fruitful setting for analyzing firm value. This study compares two ways of valuing a firm: one based on accounting and one on market information. Both approaches are used throughout the book. They clarify the extent to which accounting information can be used for explaining firm value. In addition to valuing new issues with the help of accounting information, the book examines the relationship between firm value and a number of signals such as inside shareholdings and the quality of the intermediaries hired. The issuing firm's managers use these signals for disclosing private information. Extensive data on the new issues market in the Netherlands make the study unique. Furthermore, the empirical results reveal relationships that have not been investigated before. Several findings in the book have attracted the attention of the media. A number of Dutch newspapers including the leading financial daily, 'Het Financieele Dagblad', have reported on two of the studies from the book, one on takeover defenses, the other on employee stock options, when they were published in academic journals.
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Financial disclosure and the IPO share offer price
FINANCIAL STATEMENT INFORMATION AND FIRM VALUE
Signalling and the IPO share offer price
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aandelen accounting year prior adverse selection Amsterdam Stock Exchange annual accounts assets auditor and underwriter beleggers beschermingsconstructies BP underwriters BT auditor capital cash flow statement categories of insider chapter day of trade debt ratio decreasing function earnings empirical results employee stock option equity ESOPs examined excess return F-statistic firm value firm-specific risk firm’s free cash flow funds flow statement going public growth rate hypothesis predicts informatie information asymmetry initial public offering insider shareholdings institutional blockholders investment investors IPO firms issuer issuing firm's management management ownership moral hazard mutual fund Netherlands niet number of accounting number of shares number of takeover offer value ondernemingen ondernemingswaarde onderzochte onderzoeksresultaten Panel PB ratio PE ratio percentage of insider percentage of shares presents prior to IPO provide evidence regressions share offer price shares retained signal statistically significant stock option plans takeover defenses tussen type of auditor type of underwriter underpricing variables zijn