The purpose of this study, is to explain the factors that may be able to affect the
prices of stocks in the IPO. So it could be priced at it's fair price, not less or more than it.
Which caused by the existence of asymmetric information between the
investors in the
financial market. Whereas, the asymmetric information generates adverse selection with
the investors, about the real values of the company and it's stocks in the IPO market.
This research aims to study the multiple signals, which could be used by the firm to
reduce the asymmetric information and highlight the real value of the firm and it's quality,
in Damascus Securities Exchange between (2009-2011). Some of these signals, which has
been considered in this research are: the standards of Financial and Non Financial
disclosure in it's prospectus.
The researcher reached to several results:
The Financial disclosure standards has no relation to the stock price in the Syrian
IPO market, and cannot be used as a signal to show the real value of the firm. On the other
hand Non-Financial disclosure standards could be used as a good signal to show the real
and fair price of the firms and their stocks in the IPO process.
This result could help the financial market and the firms who want to go public to
use this factors as a signal about it's quality, and for reduce the under pricing in their IPOs.
