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in our model are caused by declines in expected returns, increases in expected profitability, or increases in prior … uncertainty about average profitability. The model predicts that IPO waves are preceded by high market returns, followed by low …
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in our model are caused by declines in expected returns, increases in expected profitability, or increases in prior … uncertainty about average profitability. The model predicts that IPO waves are preceded by high market returns, followed by low …
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profitability implied in the offer prices. We show that there is a significant optimistic bias in the estimation of future … profitability compared to ex-post actual realization and the mean forecast error is substantially large. Yet we show that such error …
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