In this paper we provide new evidence on the incentives for initial public offerings (IPOs) in the emerging capital markets of Central and Eastern Europe (CEE) in the 2000s. First, we prove the existence of IPO cycles. Second, we show that the number of IPOs and their underpricing are positively...

This article provides original evidence on IPO underpricing and long-run underperformance in Central and Eastern Europe (CEE) and compares results to the European Union's developed capital markets from 2000 to 2009. Using both index-adjusted and CAPM-adjusted returns, we find significant...