findings show that IPOs underpricing is mainly explained by the signalling and the market characteristics hypotheses. The …This article tests four hypotheses (signalling, market tendency, market characteristics and the ex ante uncertainty and … information asymmetry) to explain the initial public offerings (IPOs) underpricing in the Tunisian market. Most of the empirical …

In this paper, we study the underpricing, long-run performance of IPOs and the impact of underpricing on secondary … market liquidity of IPOs which were issued in India during the period 2000-2008. The average underpricing for Indian IPOs is … 37%. Uncertainty, information asymmetry and investor optimism are the factors which explain underpricing. The IPOs which …

-institutional retail investors towards underpriced and overpriced IPOs. Our result supports the information asymmetry argument, suggesting … that informed investors (institutional investors) are heavily subscribing for underpriced IPOs and shy away from overpriced … sequentially learn from more sophisticated and informed (institutional) investors while applying for IPOs. Further, it is found …

This paper develops a signalling game in which the decision to raise public equity is a real option of the firm. Firms … of shares. The model provides a tractable approach for solving signalling games in a real options framework and predicts …

Offering (IPO) underprice. We also investigate the impact of signalling and financial variables, i.e. offer size, times … groups holding on IPO underprice. On using a sample of 92 IPOs, we find IPOs are underpriced at an average of 46.55% during … underprice. We also document positive initial day return for IPOs across all industries, while manufacturing sector IPOs are less …

We explain why underpricing in IPOs can be large in magnitude and clustered, using a signalling model where firms have …