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Perspective on Underpricing of IPOs in Emerging Economies
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In this paper, the authors discuss the pricing of initial public offerings (IPOs) from the perspective of asymmetric information theories, among others, focusing on emerging markets and their characteristics.Abstract:
Pricing of initial public offerings (IPOs) has received considerable attention from the perspective of asymmetric information theories, among others. Specific aspects of emerging markets have been ...read more
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Firm Quality or Market Sentiment: What Matters More for IPO Investors?
TL;DR: In this paper, the authors investigate the investment decision of IPO investors when equipped with information on both the quality of the firm and the market sentiment, and find that the institutional investors' decision is guided almost exclusively by firm quality while the retail investors are strongly influenced by market sentiment even in a highly transparent market where both sets of information are freely available.
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The Decision to Go Public and Business Group Affiliation: Evidence from India
C. Sekhar,P J Jijo Lukose +1 more
TL;DR: In this article , the authors examined the effect of business group affiliation on the decision to go public in Indian stock market and found that the affiliate that invests in other group affiliates' financial assets is more likely to be taken public, while those that are net receivers of intragroup support are less likely to list.
Journal ArticleDOI
IPO underpricing from the institutional investor perspective: evidence from emerging markets
TL;DR: In this paper , the authors examined the impact of underpricing from an institutional investor perspective in emerging markets, observing market adjusted returns for several countries, industries, and years, and found evidence that the under-pricing phenomenon is present across all emerging markets.
References
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Journal ArticleDOI
Why new issues are underpriced
TL;DR: In this paper, the authors present a model for the underpricing of initial public offerings based on the existence of a group of investors whose information is superior to that of the firm as well as that of all other investors.
Posted Content
The Role of Institutional Investors in Initial Public Offerings
TL;DR: In this paper, the role of institutional investors in initial public offerings (IPOs) was analyzed using a large sample of transaction-level institutional trading data, and it was found that institutions sell 70.2% of their IPO allocations in the first year, fully realize the money left on the table, and do not dissipate these profits in post-IPO trading.
Journal ArticleDOI
How do corporate governance model differences affect foreign direct investment in emerging economies
TL;DR: In this article, the authors examined the impact of national corporate governance models on inward foreign direct investment (FDI) in emerging economies and found that the home country corporate governance model is likely to shape foreign firms' choice of local partners.
Journal ArticleDOI
Cross-country IPOs: What explains differences in underpricing?
TL;DR: In this paper, the impacts of country-level information asymmetry, investors' home-country bias, effectiveness of contract enforcement mechanisms, and accessibility of legal recourse on IPO underpricing in 36 countries around the globe were studied.
Journal ArticleDOI
The Role of Institutional Investors in Initial Public Offerings
TL;DR: In this paper, the role of institutional investors in initial public offerings (IPOs) was analyzed using a large sample of transaction-level institutional trading data, and it was found that institutions sell 70.2% of their IPO allocations in the first year, fully realize the money left on the table, and do not dissipate these profits in post-IPO trading.
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