This study establishes and tests, within the framework of a noisy rational expectations equilibrium model, a formal linear relationship between the price of a risky asset and the average (consensus) and the dispersion of agents' expectations. Difficulties raised by the estimation of this...

In this paper, we empirically investigate Canadian initial public offerings (IPOs) to providing one case of international evidence of the long-run performance of IPOs. By considering a non-US dataset, we hope to shed further light on existing research findings in this area. In a sample of over...

Evidence of underpricing of initial public offerings (IPOs) has spawned considerable theoretical literature that attempts to explain the apparent contradiction to market efficiency. This article reassesses that evidence by examining not just common shares Canadian IPOs, but also unit and Junior...