Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257761 
Year of Publication: 
2021
Citation: 
[Journal:] International Journal of Financial Studies [ISSN:] 2227-7072 [Volume:] 9 [Issue:] 1 [Article No.:] 16 [Publisher:] MDPI [Place:] Basel [Year:] 2021 [Pages:] 1-20
Publisher: 
MDPI, Basel
Abstract: 
The purpose of the study is the analysis of the relationship between the par value (also known as nominal value or face value) and the parameters influencing a company's financing. Additionally, the utility of the par value as a manipulation tool for equity offerings is examined. The study is based on a sample of IPO firms which went public on the Warsaw Stock Exchange. The study finds that an excess supply of shares has a negative impact on their valuation. In contrast, decreasing the par value prompts perceptual biases among investors beneficial to the success of the issuance. Moreover, share capital is found to be a useful signaling tool to improve the company's position on the financial market.
Subjects: 
face value
financing
IPO
nominal value
par value
share capital
share premium
share price psychology
signaling
WSE
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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