Corporate Finance: Assessed assignment

Answer the following question with no more than 2000 words

a) The IPO process is characterised by information asymmetries. Explain how these asymmetries may be reduced through the book-building process.

b) Researchers have noticed that IPOs tend to be under-priced in the short-term and to under-perform in the long-term. Explain how under-pricing and under-performance are measured in empirical studies and explain why these phenomena are observed

c) Why might a company choose to list overseas?

d) Companies that are listed on the London Stock Exchange must comply with, or give reasons for their non-compliance with the UK Code of Corporate Governance. Briefly explain the Code's requirements with respect to independent directors. Do you believe that these requirements deter relatively small companies from seeking a listing? Explain your response.