In this article, we evaluate underpricing of initial public offerings (IPOs) at the Berlin Stock Exchange between 1870 … during the speculative period of the early 1870s. Moreover, standard underpricing theories based on asymmetric information …, signalling mechanisms, or litigation risk cannot explain underpricing. In contrast to modern markets, the past market return had …

–2004 period to test the underpricing effect. We do not find any evidence that risk management can reduce the uncertainty relating … to the new issue and hence alleviate the extent of underpricing. A plausible explanation for this lack of evidence is the … provide evidence that the underpricing returns for resources IPOs are not impacted upon by the strength of alternative …

To resolve the IPO underpricing puzzle it is essential to analyze who knows what when during the issuing process. In … midpoint of the bookbuilding range and the offer price. The pre-issue prices explain a large part of the underpricing left … underpricing suggests. …

underpricing of IPOs has existed, but has significantly decreased over time in our sample. Employing a mixture of distributions …

study extends the existing literature concentrating on the degree of underpricing over a 3-month period lasting from the … listing date to the 3-month anniversary showing significant evidence of IPO underpricing. The analyses support the investors … explanatory variables of IPO underpricing. The study finds that the aftermarket risk level of the IPO, the oversubscription ratio …

underpricing of IPOs has existed, but has significantly decreased over time in our sample. Employing a mixture of distributions …