Date of Submission



Although previous studies suggest that Australian resources sector firms operate in an information asymmetric environment, few empirical works investigating the determinants of firms’ information asymmetry and performance at initial public offering (IPO) have been identified. This is despite the sector’s important contribution to Australia’s gross domestic product (GDP) and employment. A better understanding of how resources sector IPOs are evaluated should aid stakeholders in making sound investment decisions. This thesis investigates the influence of IPO signals on analyst perceptions of information asymmetry, attractiveness of IPO and expected underpricing associated with Australian resources sector IPOs. It draws on the literature from signalling theory, reputational capital, IPO, and behavioural finance in developing its theoretical framework. A mixed-method research approach incorporating quantitative data collected through a completely-crossed factorial experiment and qualitative data collected through semi-structured interviews was used to achieve this thesis’ research objectives. The results indicate retained ownership proportion and underwriter reputation weighted relatively higher in influencing information asymmetry. Underwriter reputation, retained ownership proportion, and independent geologist reputation signals significantly influenced attractiveness of IPO. Investigating accountant reputation signal had the lowest relative influence on attractiveness of IPO. Only underwriter reputation and retained ownership proportion significantly influenced analyst perceptions of expected underpricing. There was a significant positive relationship between retained ownership proportion and expected underpricing implying increased issuers’ opportunistic behaviours at IPO (Bruton, Chahine & Filatotchev 2009; Robinson, Robinson & Peng 2004). The findings imply that Australian resources sector issuers should allocate relatively more funds to hiring a reputable underwriter as this is the most influential and informative IPO signal, holding retained ownership proportion constant. Significant interaction effects between the IPO signals revealed that participants processed cues configurally. Contrary to existing literature, investment analysts portrayed an above moderate degree of self-insight when assessing their own evaluation.


Peter Faber Business School

Document Type


Access Rights

Open Access


340 pages

Degree Name

Doctor of Philosophy (PhD)


Faculty of Law and Business