Ownership dispersion, costly information, and IPO underpricing
Article Abstract:
A sample of firm-commitment and best-effort IPO issues from 1977-1988 indicates that the demand of the issuer of an initial public offering (IPO) for expanded ownership dispersion stimulates underpricing/oversubscription, and is assumed to be the for IPO underpricing. Under this assumption, allowing oversubscription leads to broad initial ownership dispersion, which brings about a liquid secondary market for the IPO shares.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1996
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Market efficiency, long-term returns, and behavioral finance
Article Abstract:
Stock prices' overreaction to information is as common as underreaction. Such observation shows consistency with the market efficiency hypothesis which claims that anomalies are chance results. A similarity in frequency was also observed between post-event continuation of pre-event abnormal returns and post event reversal. Modification in measurement technique tend to eliminate long-term return anomalies.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1998
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Is the abnormal return following equity issuances anomalous?
Article Abstract:
A study into whether a distinct equity issuer underperformance anomaly exists has been made.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 2000
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