insight into how this market event occurs. The study aims at establishing if initial public offer underpricing exists in the … earn 4% to 10% higher first day returns than overvalued IPOs, but earn 30% to 50% lower returns over the next 12 months … margins and returns on assets than overvalued IPOs over the period of study, suggesting that any insider trading implicit in …

determinants. Using data on the IPOs of 948 Chinese firms, we find that average initial returns are 66% and that underpricing and …This paper separates the amount of IPO underpricing (primary market underpricing) and overvaluation (secondary market … return. Value uncertainty in IPOs is positively related to both underpricing and overvaluation, and both the underwriter …