Original scientific paper
https://doi.org/10.1080/1331677X.2021.1985575
Does share capital mater for company performance?
Tadeusz Dudycz
Abstract
This article examines the impact of share capital on companies’
performance as well as the effect of accounting information on
companies’ market performance and the impact of pre-IPO information on the predictive power of companies’ performance after
an initial public offering (IPO). The research was conducted on a
sample of IPO companies debuting on the Warsaw Stock
Exchange. It shows that a large percentage of share capital in
equity reduces capital flexibility but can also be a signal to
improve companies’ market performance. It also shows that after
an IPO, the market’s information efficiency diminishes, which
means, among other things, that pre-IPO accounting information
has a negligible impact on the companies’ market performance
after the IPO.
Keywords
Share capital; face value; capital flexibility; information efficiency; company performance; IPO
Hrčak ID:
302496
URI
Publication date:
31.3.2023.
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