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Strategies on Initial Public Offering of Company Equity at Stock Exchanges in Imperfect Highly Volatile Global Capital Markets with Induced Nonlinearities

Ledenyov, Dimitri - 2015

-building. We focus on the IPO initial underpricing, long-run performance and after market liquidity problems. 1. We propose that …-determinant for the successful IPO deal completion. We propose the Ledenyov theory on the origins of the IPO underpricing and long … term underperformance effects, which states that the IPO underpricing and long term underperformance can be explained by …

Persistent link: https://www.econbiz.de/10013026463

Optimism, Divergence of Opinion, and the Long-Run Performance of IPOs

Ikeda, Naoshi - 2019

This study tests speculative bubble theory, which assumes investors' heterogeneous beliefs and short-sale constraints, as a potential explanation for the long-run underperformance of initial public offerings (IPOs). The prediction of speculative bubble theory is difficult to test directly...

Persistent link: https://www.econbiz.de/10012902027

Salient or Safe : Why Do Predicted Stock Issuers Earn Low Returns?

Lee, Charles M.C. - 2019

Predicted stock issuers (PSIs) are firms with expected “high-investment and low-profit” (HILP) profiles that earn unusually low returns. We carefully document important features of PSI firms to provide insights on the economic mechanism behind the HILP phenomenon. Top-PSI firms are...

Persistent link: https://www.econbiz.de/10012902654

Share Issuance and Expected Returns Around the World

Zaremba, Adam - 2019

Practitioners and academics often consider IPO activity as a gauge of investor optimism and market valuation. This study investigates the cross-sectional implications of this concept at the country level. We use sorting and cross-sectional tests to examine linkages between past share issuance...

Persistent link: https://www.econbiz.de/10012904214

Do Industry Growth Prospects Drive IPO Stock Performance?

Dong, Ming - 2012

We examine the relation between an ex ante measure of IPO growth prospects – the industry-level long-term analyst earnings growth forecast – and short- and long-run IPO returns, using a sample of 7,570 IPOs from 1982 to 2007. The use of an industry-level, rather than firm-level growth...

Persistent link: https://www.econbiz.de/10013115063

Share Issuance Effects in the Cross-Section of Stock Returns

Lancaster, David P. - 2012

Previous research describes the net share issuance anomaly in U.S. stocks as pervasive, both in size-based sorts and in cross-section regressions. As a further test of its pervasiveness, this paper undertakes an in-depth study of share issuance effects in the Australian equity market. The...

Persistent link: https://www.econbiz.de/10013105357

Insider Trading and the Long-Run Performance of IPOs

Hoque, Hafiz - 2010

We find significant impact of insider trading activity on the long-run performance of IPOs. We show that, at the aggregate, insiders are net sellers in IPOs that generate positive long-run returns, while they are net buyers in those that underperform. When we analyse individual trades, we find...

Persistent link: https://www.econbiz.de/10013146798

Are IPOs Really Underpriced or Overpriced : Evidence from Tehran Stock Exchange

Bagherzadeh, Saeed - 2010

While it is well documented in the literature that IPOs have been consistently underpriced on average of 15% or more over the past three decades all over the world, the recent seminal study by Purnanandam and Swaminathan (2004) report that IPOs are overvalued at the offer price relative to value...

Persistent link: https://www.econbiz.de/10013147576

IPO Stock Performance and the Financial Crisis

King, Emmet - 2014

of underpricing. Measuring 3-year buy-and-hold abnormal returns by benchmarking IPOs against portfolios of matched …

Persistent link: https://www.econbiz.de/10013052302

Does ERM sophistication drive IPO initial performance in emerging market? : evidence from Malaysian market

Norliza Che Yahya; Siti Sarah Alyasa-Gan; Rasidah … - In: ACRN journal of finance and risk perspectives 11 (2022), pp. 141-157

The escalation of complexity and multidimensional (internal and external) factors bring companies to a position where risk management should be of main concern. Enterprise Risk Management (ERM) adoption and the extent of ERM implementation is seen as a guaranteeing element to increase the value...

Persistent link: https://www.econbiz.de/10014235058