Krigman, Laurie; Shaw, Wayne H.; Womack, Kent L. - In: Journal of Finance 54 (1999) 3, pp. 1015-1044
This paper examines underwriters' pricing errors and the information content of first-day trading activity in IPOs. We show that first-day winners continue to be winners over the first year, and first-day dogs continue to be relative dogs. Exceptions are "extra-hot" IPOs, which provide the worst...