Abstract:

This paper examines the impact of share capital on the success of new issues during initial public offering (IPO) The study is based on a sample of IPO firms which went public on the Warsaw Stock Exchange from 1998 to 2013. The paper shows that share capital which was created to protect corporate creditors against the “extra” risks associated with limited shareholder liability – interacts with investor behaviour and can be used to improve the success of a share issue.