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UNDERPRICING AND LONG-TERM PERFORMANCE OF IPOS: EVIDENCE FROM EUROPEAN INTERMEDIARY-ORIENTED MARKETS.

UNDERPRICING AND LONG-TERM PERFORMANCE OF IPOS: EVIDENCE FROM EUROPEAN INTERMEDIARY-ORIENTED... The two main anomalies characterizing Initial Public Offerings (IPOs) in Europe, initial underpricing and long run underperformance, are analyzed using a sample of 437 IPOs over the period 1997–2011. The paper focuses on three highly developed European countries (Italy, France and Germany), and studies the two anomalies across different industries. The three countries are found to have a broadly similar trend in the short run anomaly, but more significant differences in long run underperformance. Industry is not found to be a determinant of underpricing or long run performance. Unlike previous literature, this paper focuses on homogeneous Eurozone countries considering the recent financial crisis period. JEL codes: G14; G21; G24 Keywords: underpricing; IPOs; long-run performance; European countries; stocks; abnormal returns http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Economics, Management, and Financial Markets Addleton Academic Publishers

UNDERPRICING AND LONG-TERM PERFORMANCE OF IPOS: EVIDENCE FROM EUROPEAN INTERMEDIARY-ORIENTED MARKETS.

GINO GANDOLFI
Economics, Management, and Financial Markets , Volume 13 (3): 26 – Jan 1, 2018
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Publisher
Addleton Academic Publishers
Copyright
© 2009 Addleton Academic Publishers
ISSN
1842-3191
eISSN
1938-212X
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Abstract

The two main anomalies characterizing Initial Public Offerings (IPOs) in Europe, initial underpricing and long run underperformance, are analyzed using a sample of 437 IPOs over the period 1997–2011. The paper focuses on three highly developed European countries (Italy, France and Germany), and studies the two anomalies across different industries. The three countries are found to have a broadly similar trend in the short run anomaly, but more significant differences in long run underperformance. Industry is not found to be a determinant of underpricing or long run performance. Unlike previous literature, this paper focuses on homogeneous Eurozone countries considering the recent financial crisis period. JEL codes: G14; G21; G24 Keywords: underpricing; IPOs; long-run performance; European countries; stocks; abnormal returns

Journal

Economics, Management, and Financial Markets – Addleton Academic Publishers

Published: Jan 1, 2018

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