33
Finance,
2009).
Some
researchers
agreed
that
information
asymmetry
has decreased since the industry
has been regulated (Eleswarapu
et al,
2004).
Especially
in
the
finance
industry
they
have
a
Regulation
of
Fair Disclosure
that improved
the informational
efficiency
to the
public (Heflin et al, 2003).
2.1.8.4 Ownership of the Firms
Last
characteristics
the author
would
like
to analyze
are
the
ownership
of the company,
which
will be divided
into two groups,
private
company
and State Owned
Enterprises
(SOE).
Difference
in
ownership
can
affect
the information
asymmetry
level,
which
could
influence their choice of marketing method
in processing the IPOs.
Government
owned
companies
or
SOE
has
a
built
up
reputation
over
the
years,
therefore
they
will
have
less
information
asymmetry
to
the
public
(Huang
&
Levich,
1999).
Private
company
on
the
other
side
might experience more information asymmetry to
the
public, since
their reputation
is not as high as SOE.
Moreover, SOE has to include economic and political factors that
might affect the
offer
price. Both factors might influence the
investor’s
valuation
of
the
shares.
Therefore,
SOE
has
a
tendency
to
choose fixed price marketing method (Jones et al, 1999).
2.1.8.5 Risk Factors of the Firms
When
preparing
the
prospectus,
underwriters
and
issuers
will
include
relevant risk factors that are associated with the prospects
of the
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