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| Author | : Shehzad Khan |
| Publisher | : |
| Total Pages | : 7 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download Short-Run Underpricing of Initial Public Offerings (IPOs) Book in PDF, ePub and Kindle
The academic literature on IPOs short run performance grown quite rapidly over the last decade, due to its puzzling phenomena of under pricing. The current study aims at conducting a non-systematic review of literature on the theories and empirical evidences of initial public offering (IPO) under pricing in order to understand its meaning and dimensions. In this regard a thorough review of existing literature has done and it is found that the IPO short-run under pricing is associated almost with every financial market of the world. However, the magnitude of under pricing varies from one country to another, depends on the institutional structure, binding regulations, contractual mechanisms, and the characteristics of the firms going public. Various theories and propositions have been developed by the researchers to explain the phenomena of under pricing, which needs to be tested empirically at country-specific environment, such as; quality of legal framework, macroeconomic factors, and sociopolitical system.
| Author | : Henning Padberg |
| Publisher | : GRIN Verlag |
| Total Pages | : 23 |
| Release | : 2007-11-30 |
| Genre | : Business & Economics |
| ISBN | : 3638868680 |
Download Initial Public Offering (IPO) and theories of underpricing Book in PDF, ePub and Kindle
Essay from the year 2006 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, University of Glasgow (Department of Accounting and Finance), course: Financial Markets, language: English, abstract: Related to the issuance of shares there are different kinds of “puzzles” which motivate to take a closer look at: Short-run ‘underpricing’, hot and cold issue markets, spread clustering and longrun underperformance. Even though these phenomena are frequently discussed in several scientific papers and journals, there is no conclusively completed theory. This work will concentrate on the various approaches developed to explain ‘underpricing’. As an introduction into the topic it will also provide a summary of the process of an Initial Public Offering (IPO).
| Author | : Arvin Ghosh |
| Publisher | : Routledge |
| Total Pages | : 137 |
| Release | : 2017-07-05 |
| Genre | : Business & Economics |
| ISBN | : 1351496751 |
Download Pricing and Performance of Initial Public Offerings in the United States Book in PDF, ePub and Kindle
In this timely volume on newly emerging financial mar- kets and investment strategies, Arvin Ghosh explores the intriguing topic of initial public offerings (IPOs) of securities, among the most significant phenomena in the United States stock markets in recent years. Before the 2000-2001 market turndown, hardly a week went by when more than a few companies did not become public, either in the organized stock exchange or in the Over the Counter (OTC) market. In the often over-burdened, technology-heavy Nasdaq market, the role of IPOs was crucial for the market's new vigor and growth. Internet stocks were able to find a mode to supply key momentum to the market. In the so-called "New Economy" of the 1990s, it was the seductively accessible IPO that ushered in the world's information technology revolution.Ghosh sets out to examine the pricing and financial performance of IPOs in the United States during the period 1990-2001. In the opening chapter he discusses the rise and fall of IPOs in the preceding decade. Chapter 2 further delineates the IPO process from the start of the prospectus to the end of the "quiet period" and aftermarket stabilization. In chapter 3 Ghosh analyzes the mispricing and deliberately deceptive underpricing, or "flipping," of Internet IPOs. Chapter 4 delves deeper into the pricing and operating efficiency of Nasdaq IPOs. Chapter 5 analyzes the pricing and long-run performance of IPOs both in the New York Stock Exchange and in the Nasdaq markets. In chapters 6 and 7 the author deals with the pricing and performance of the venture-blocked and nonventure-backed IPOs in general and Internet IPOs in particular. In chapter 8 he analyzes the role of underwriters as market makers. In chapter 9 Ghosh discusses the accuracy of analysts' earnings forecasts. In the concluding chapter, he summarizes the principal findings of the study and the recent revival of the IPO market and its place in capital formation as well as the latest developments in t
| Author | : Oliver Reiche |
| Publisher | : diplom.de |
| Total Pages | : 102 |
| Release | : 2014-06-01 |
| Genre | : Business & Economics |
| ISBN | : 3954897954 |
Download The Phenomenon of IPO Underpricing in the European and U.S. Stock Markets Book in PDF, ePub and Kindle
The Initial Public Offering (IPO) marks one of the most important events of a company. Basically, the aim is to generate maximum proceeds by selling the company’s shares to investors. However, the shares that are sold seem to be underpriced as the price significantly soars on the first trading day. Since the very first detection of this phenomenon in the United States in 1969, several subsequent studies have documented the existence of worldwide IPO underpricing. This study focuses on IPO Underpricing in the European and United States Stock Markets by outlining and discussing the following essential issues: What is underpricing in the context of the IPO? Which motivations are there and how do they impact? Is there IPO underpricing in the markets of Europe and the United States of America?
| Author | : Madhuri Malhotra |
| Publisher | : |
| Total Pages | : 8 |
| Release | : 2016 |
| Genre | : |
| ISBN | : |
Download Initial Public Offerings' Underpricing Book in PDF, ePub and Kindle
Issuing of shares through book building process leads to efficient price discovery. This study attempts to examine how the initial public offerings (IPO) issued through book building fare in short-run. The study examines the first day returns of 288 book-built IPOs in India for a 7 year period (2004-2010). Based on this set of observations this study builds a comprehensive model of the short term price performance of the new offerings. Results indicate that the IPOs are under-priced in India. Over-subscription and market volatility was found to be the major factors influencing underpricing. The results imply that the investors over react to the market. The presence of deliberate underpricing by the underwriters or the issuing firm to decrease block holdings by the shareholders is also evident. Finally, results illustrate a trend towards a less aggressive underpricing.
| Author | : Marius Hamer |
| Publisher | : GRIN Verlag |
| Total Pages | : 73 |
| Release | : 2008 |
| Genre | : Business & Economics |
| ISBN | : 3638903699 |
Download Empirical Evidence on IPO-Underpricing Book in PDF, ePub and Kindle
Diploma Thesis from the year 2007 in the subject Business economics - Investment and Finance, grade: 1,3, European Business School - International University Schlo Reichartshausen Oestrich-Winkel, 80 entries in the bibliography, language: English, abstract: This paper aims at establishing a link between the average level of initial return of IPO shares, existing underpricing explanations and the dot-com bubble. In years prior to the boom of the new economy, underpricing was explained by various theories, which have extensively been developed since decades. However, in the years 1998 to 2001 IPOs were overly underpriced, leading to assumptions about behavioural aspects and investor irrationality. Analysing a comprehensive dataset of 371 IPOs on the Frankfurter B rse between 1997 and 2007, this paper aims at providing evidence that the observed lower levels of initial returns in recent years can indeed be aligned with existing theories on the basis of rational behaviour of market participants. Firstly, the IPO process and its major participants will be presented followed by a review of relevant studies on the IPO phenomenon. In the next step, established underpricing theories are recapitulated. A descriptive analysis of the data sample points out the particularities concerning the company and transaction characteristics of the sample firms. In a last step, a regression analysis relates various proxies for information asymmetry to established underpricing theories. It gives reason to believe that the irrationality at the turn of the century has vanished and that underpricing can again be explained by established theories.
| Author | : Priyanka Singh |
| Publisher | : |
| Total Pages | : 39 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
Download Short Run and Long Run Dynamics of Initial Public Offerings Book in PDF, ePub and Kindle
This paper investigates the short run as well as long run underpricing of the Initial Public Offerings in the Indian Capital markets by looking at the different factors affecting them. As the underwriters do not have discretionary power in Indian IPOs, some of the theoretical models like Rock's (1986) and costly information acquisition hypothesis (1989), which involves the extent of informed as well as uninformed investors can be tested more robustly in Indian Capital markets. Therefore a model is proposed taking these oversubscription variables along with age and issue size to explain the underpricing. Since different sectors have different level of private and public information, it is interesting to perform industry wise analysis and has been taken up here. The period for study was 22 months (Jan, 2006- Oct, 2007) considering 116 IPOs. It was found that both short and long run return of IPOs are positive for this period. The short run underpricing was 18% and long run underpricing was 11.5%. Oversubscription variables, namely, total oversubscription, informed (institutional investors) and uninformed investors (retail investors) oversubscription, were found to be the main determinants of underpricing in the Indian IPOs. Higher subscription implied higher underpricing. However, informed investor's oversubscription was higher in companies giving more return in the long run. Further Indian Capital markets were found to follow industry specific waves. Upon doing sector wise underpricing analysis, the high performing sectors were more underpriced in the short run as well as performing better in the long run than low performing sectors. Infrastructure, financial and entertainment sectors with positive long run return fell under this category for the period of study. On the contrary, IT sector gave higher initial return but negative return in the long run.
| Author | : Seth Anderson |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 126 |
| Release | : 2012-12-06 |
| Genre | : Business & Economics |
| ISBN | : 1461522951 |
Download Initial Public Offerings: Findings and Theories Book in PDF, ePub and Kindle
Initial public offerings (IPOs) play a crucial role in allocating resources in market economies. Because of the enormous importance of IPOs, an understanding of how IPOs work is fundamental to an understanding of financial markets generally. Of particular interest is the puzzling existence of high initial returns to equity IPOs in the United States and other free-market economies. Audience: Designed for use by anyone wishing to perform further academic research in the area of IPOs and by those practitioners interested in IPOs as investment vehicles.
| Author | : Michelle Lowry |
| Publisher | : |
| Total Pages | : 166 |
| Release | : 2017 |
| Genre | : Electronic books |
| ISBN | : 9781680833416 |
Download Initial Public Offerings Book in PDF, ePub and Kindle
The purpose of this monograph is to provide an overview of the IPO literature since 2000. The fewer numbers of companies going public in recent years has raised many questions regarding the IPO process, in both academic and regulatory circles. As we all strive to understand these changes in the market, it is especially important to understand the dynamics underlying the IPO process. If the process of going public is too costly or the IPO mechanism is plagued by too many conflicts of interest among the various intermediaries, then private companies may rationally choose other methods of raising capital. In a related vein, it is imperative that new regulations not be based on research focusing solely on large, more mature firms. Newly public firms have unique characteristics, and an increased understanding of such issues will contribute positively to well-functioning public markets and further growth of the entrepreneurial sector. We also provide a detailed guide to researchers on how to obtain a research-quality sample of IPOs, from standard data sources. Related to this, we tabulate important corrections to these standard data sources.
| Author | : Bjørn Espen Eckbo |
| Publisher | : Elsevier |
| Total Pages | : 559 |
| Release | : 2007-05-21 |
| Genre | : Business & Economics |
| ISBN | : 0080488919 |
Download Handbook of Corporate Finance Book in PDF, ePub and Kindle
Judging by the sheer number of papers reviewed in this Handbook, the empirical analysis of firms’ financing and investment decisions—empirical corporate finance—has become a dominant field in financial economics. The growing interest in everything “corporate is fueled by a healthy combination of fundamental theoretical developments and recent widespread access to large transactional data bases. A less scientific—but nevertheless important—source of inspiration is a growing awareness of the important social implications of corporate behavior and governance. This Handbook takes stock of the main empirical findings to date across an unprecedented spectrum of corporate finance issues, ranging from econometric methodology, to raising capital and capital structure choice, and to managerial incentives and corporate investment behavior. The surveys are written by leading empirical researchers that remain active in their respective areas of interest. With few exceptions, the writing style makes the chapters accessible to industry practitioners. For doctoral students and seasoned academics, the surveys offer dense roadmaps into the empirical research landscape and provide suggestions for future work. *The Handbooks in Finance series offers a broad group of outstanding volumes in various areas of finance *Each individual volume in the series should present an accurate self-contained survey of a sub-field of finance *The series is international in scope with contributions from field leaders the world over
