Guo, Hui - In: Journal of Financial and Quantitative Analysis 46 (2011) 03, pp. 871-905
This paper proposes a measure of ex ante equity premium, IPOFDR, which is the average difference between the initial public offering (IPO) offer price and the 1st-trading-day close price. I test the idea in 3 ways. First, there is a positive relation between IPOFDR and future market returns....