We study the listing day opening price return and compare it with the closing price return for ChiNext IPOs after the China Securities Regulatory Commission (CSRC) adopted a new "Chinese-style" bookbuilding process. We start from a traditional OLS model by screening a set of potential variables,...

The signaling hypothesis suggests that firms have incentives to underprice their initial public offerings (IPOs) to signal their quality to the outside investors and to issue seasoned equity (SEO) at more favorable terms. While the initial empirical evidence on the signaling hypothesis was weak,...