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Publication - Dr Paula Hill

    Declared investment plans and IPO firm value


    Hill, P, 2008, ‘Declared investment plans and IPO firm value’. Applied Financial Economics, vol 18 (1)., pp. 23 - 39


    Trueman (1986) argues that an entrepreneur might signal the quality of his information about a firm's investment projects by disclosing the extent to which external capital raised is to be applied to capital expenditure. This article argues that, via Trueman's theory, a higher level of disclosed capital expenditure at the IPO is associated with higher firm values. The results confirm the anticipated significant positive relationship between firm value and the extent to which funds raised at the IPO are applied to investment.

    Full details in the University publications repository