Armed with only the prospectus, can a retail investor pick a good IPO?

• Main Authors: Lai, Kian Boon, Yap, Tuck Hong, Teo, Wee Liang
• Other Authors: Charoenwong, Charlie
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::Finance::Equity
• Online Access: http://hdl.handle.net/10356/9342
• Institution: Nanyang Technological University

This study investigates whether four financial ratios, namely ROE, ROA, NPM and P/E ratios, derived from information in the prospectus issued by IPO firms have any predictability on returns on the first day and returns for various holding periods.