30
company
therefore
there
will
be
less
uncertainty and
less
information
asymmetry
(Daily
et
al,
2003).
Information
from
potential
investors
is
extracted
through
the
book
building
method,
which
will
definitely
reduce
the
information asymmetry (Cornelli & Goldreich, 2003).
The
five
main
firm’s
characteristics
that
this
paper
will
address
are
the
size,
age,
industry
that
they
operate
in, the
ownership
of
the
issuers
and
the
risk
factors that the company will face in the future.
2.1.8.1 Size of The Firms
In terms of size,
large companies
have much easier time to collect
and
gain
from
the
capital
market,
compared
to
smaller
companies.
Large
companies
have the
added advantage
of
being able
to
spend more
money
on
their
roadshows,
during
the
book
building
process
of
their
IPOs.
Having
a
larger
sized
company would
also
attract a
higher
level
of
quality,
talented
management,
which
is essential
in operating
the
business
on
that
scale.
Traditionally,
the
total
tangible
assets
of a
company
are a
clear
indicator
of
the company’s
size,
and
their
quality
of management.
Larger
firms
in
terms
of
their
tangible
assets
will
present
less
uncertainty
and
less information
asymmetry
since
they
have
greater
resources
to
reduce
information
asymmetry
(Daily
et
al,
2003).
Size
of the firms
sends
a value
to potential
investors
that they are less risky
(Bhabra
&
Pettway,
2003).
Larger
firms
will
also
attract
more
larger
investor
and able
to
extract
more
information
from
potential
investors
through
the book
building
marketing
method.
Also,
large
issuers
will
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