Access the full text.
Sign up today, get DeepDyve free for 14 days.
Kevin Rock (1986)
Why new issues are underpricedJournal of Financial Economics, 15
Dongwei Su (2003)
The Underpricing of Initial Public Offerings
K. Hanley, Anil K, Paul Seguin (1993)
Price stabilization in the market for new issuesJournal of Financial Economics, 34
I. Welch (1989)
Seasoned Offerings, Imitation Costs, and the Underpricing of Initial Public OfferingsJournal of Finance, 44
Lawrence Benveniste, Sina Erdal, W. Wilhelm (1998)
Who benefits from secondary market price stabilization of IOPsJournal of Banking and Finance, 22
Kathleen Weiss Hanley (1993)
The Underpricing of IPOs and the Partial Adjustment PhenomenonJournal of Financial Economics, 34
R. Ibbotson, J. Sindelar, J. Ritter (1988)
INITIAL PUBLIC OFFERINGSJournal of Applied Corporate Finance, 1
Tim Loughran, J. Ritter (2002)
Why Has IPO Underpricing Changed Over Time?Financial Management
C. Ball, W. Torous, A. Tschoegl (1985)
The degree of price resolution: The case of the gold marketJournal of Futures Markets, 5
Lawrence Benveniste, P. Spindt (1989)
How investment bankers determine the offer price and allocation of new issuesJournal of Financial Economics, 24
Judith Ruud (1993)
Underwriter price support and the IPO underpricing puzzleJournal of Financial Economics, 34
A. Chalk, John Peavy (1987)
Initial Public Offerings: Daily Returns, Offering Types and the Price EffectFinancial Analysts Journal, 43
Reena Aggarwal (2000)
Stabilization Activities by Underwriters after Initial Public OfferingsJournal of Finance, 55
Chitru Fernando, Srinivasan Krishnamurthy, P. Spindt (2002)
Is the Offer Price in IPOs Informative? Underpricing, Ownership Structure, and Performance
D. Asquith, Jonathan Jones, R. Kieschnick (1998)
Evidence on Price Stabilization and Underpricing in Early IPO ReturnsJournal of Finance, 53
Paul Seguin, M. Smoller (1997)
Share price and mortality: An empirical evaluation of newly listed Nasdaq stocksJournal of Financial Economics, 45
D. Baron (1982)
A Model of the Demand for Investment Banking Advising and Distribution Services for New IssuesJournal of Finance, 37
Franklin Allen, Gerald Faulhaber (1989)
Signalling by underpricing in the IPO marketJournal of Financial Economics, 23
Tim Loughran, J. Ritter, Kristian Rydqvist (1994)
Initial public offerings: International insightsPacific-basin Finance Journal, 2
Previous studies have shown that the pattern of first day returns to initialpublic offerings is consistent with the hypotheses of underpricing and price support. We examine two different periods, 1975–1984 and 1996–2002, and find that in each case the measures of price support and underpricing are substantially affected by the initial public offerings' beginning price. During the period 1975–1984, the mean and standard deviation of returns to the price supported group are nearly always zero regardless of price, whileg the mean of the returns to the underpriced group is smile-shaped: high for low-priced and high-priced stocks but lower for stocks offered at intermediate prices. The patterns are different in the most recent data: the mean and standard deviation of both the price supported and underpriced groups are smile-shaped. For the lowest priced stocks, the measures in the later period mirror those for the 1975–1984 period, but for more expensive stocks the measures are substantially higher. The results apply to the first day returns of both firm commitment and best efforts offerings. Once price is taken into account, other than the difference in the probability of price support, the differences among offering types seem to be of secondary importance in explaining first day returns.
Review of Quantitative Finance and Accounting – Springer Journals
Published: Jan 1, 2006
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.