UNDERPRICING AND LONG-TERM PERFORMANCE OF IPOS: EVIDENCE FROM EUROPEAN INTERMEDIARY ORIENTED MARKETS
UNDERPRICING AND LONG-TERM PERFORMANCE OF IPOS: EVIDENCE FROM EUROPEAN INTERMEDIARY-ORIENTED MARKETS
Author(s): GINO GANDOLFI, MASSIMO REGALLI, MARIA-GAIA SOANA, Maria Cristina ArcuriSubject(s): Business Economy / Management, Financial Markets
Published by: Addleton Academic Publishers
Keywords: underpricing; IPOs; long-run performance; European countries; stocks; abnormal returns;
Summary/Abstract: The two main anomalies characterizing Initial Public Offerings (IPOs) in Europe, initial underpricing and long run underperformance, are analyzed using a sample of 437 IPOs over the period 1997–2011. The paper focuses on three highly developed European countries (Italy, France and Germany), and studies the two anomalies across different industries. The three countries are found to have a broadly similar trend in the short run anomaly, but more significant differences in long run underperformance. Industry is not found to be a determinant of underpricing or long run performance. Unlike previous literature, this paper focuses on homogeneous Eurozone countries considering the recent financial crisis period.
Journal: Economics, Management, and Financial Markets
- Issue Year: 13/2018
- Issue No: 3
- Page Range: 11-36
- Page Count: 26
- Language: English
- Content File-PDF
