The Phenomenon Of Ipo Underpricing In The European And U S Stock Markets

Author : Oliver Reiche
Publisher : Anchor Academic Publishing (aap_verlag)
Page : 105 pages
File Size : 40,6 Mb
Release : 2014-06-23
Category : Business & Economics
ISBN : 9783954892952

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The Phenomenon of IPO Underpricing in the European and U.S. Stock Markets by Oliver Reiche Pdf

The Initial Public Offering (IPO) marks one of the most important events of a company. Basically, the aim is to generate maximum proceeds by selling the company’s shares to investors. However, the shares that are sold seem to be underpriced as the price significantly soars on the first trading day. Since the very first detection of this phenomenon in the United States in 1969, several subsequent studies have documented the existence of worldwide IPO underpricing. This study focuses on IPO Underpricing in the European and United States Stock Markets by outlining and discussing the following essential issues: What is underpricing in the context of the IPO? Which motivations are there and how do they impact? Is there IPO underpricing in the markets of Europe and the United States of America?

Author : Oliver Reiche
Publisher : diplom.de
Page : 102 pages
File Size : 47,6 Mb
Release : 2014-06-01
Category : Business & Economics
ISBN : 9783954897957

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The Phenomenon of IPO Underpricing in the European and U.S. Stock Markets by Oliver Reiche Pdf

The Initial Public Offering (IPO) marks one of the most important events of a company. Basically, the aim is to generate maximum proceeds by selling the company’s shares to investors. However, the shares that are sold seem to be underpriced as the price significantly soars on the first trading day. Since the very first detection of this phenomenon in the United States in 1969, several subsequent studies have documented the existence of worldwide IPO underpricing. This study focuses on IPO Underpricing in the European and United States Stock Markets by outlining and discussing the following essential issues: What is underpricing in the context of the IPO? Which motivations are there and how do they impact? Is there IPO underpricing in the markets of Europe and the United States of America?

Author : Claus Birkenbeul
Publisher : GRIN Verlag
Page : 81 pages
File Size : 45,6 Mb
Release : 2010-09-30
Category : Business & Economics
ISBN : 9783640713882

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The Specific Underpricing of IPOs in U.S. Stock Markets by Claus Birkenbeul Pdf

Master's Thesis from the year 2010 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, Munich Business School University of Applied Sciences, language: English, abstract: The economical development is improving and world trade volumes are expected to recover. The recorvery process is developing constantly but slowly: Share prices have rebounded within 2009, worldwide trade volumes have recovered slightly and are expected to catch up with values from the end of 2008 during the next year (cf. OECD 2009). The world is recovering from one of the most severe economic downturns since The Great Depression. Comparing GDP volumes from the previous period at the same time, OECD countries lost up to 2%. As a logical consequence the U.S. IPO market has been affected by the economic meltdown as well. "IPO activity tends to cluster in certain time periods, thus it appears in waves, so-called hot IPO markets" (Hamer 2007, 9). From 2007 to 2008 th e number of IPOs decreased. The U.S. market broke down by more than 85% in one year. In 2007 there were 160 IPOs whereas in 2008 21 securities went public fort the first time (cf. Ritter 2010, 2). After the slowest year for IPOs since the 1970s, the market began to show signs of life again in 2009. The number of offerings increased by 21% although the offering value decreased by almost 15% (cf. PWC 2010). [...]

Author : Anonim
Publisher : CEPS
Page : 94 pages
File Size : 51,8 Mb
Release : 2006
Category : Electronic
ISBN : 9789290796589

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A Survey of the European IPO Market by Anonim Pdf

Author : Tim Jenkinson,Alexander Ljungqvist
Publisher : Oxford University Press, USA
Page : 264 pages
File Size : 48,7 Mb
Release : 2001
Category : Business & Economics
ISBN : 0198295995

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Going Public by Tim Jenkinson,Alexander Ljungqvist Pdf

Going Public investigates why companies routinely underprice themselves as they try to list themselves on the stock exchange. They subsequently underperform over the long-term and, in Going Public, the authors explore these 2 phenomena in plain English.

Author : Marius Hamer
Publisher : GRIN Verlag
Page : 73 pages
File Size : 45,9 Mb
Release : 2008
Category : Electronic
ISBN : 9783638903691

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Empirical Evidence on IPO-Underpricing by Marius Hamer Pdf

Diploma Thesis from the year 2007 in the subject Business economics - Investment and Finance, grade: 1,3, European Business School - International University Schlo Reichartshausen Oestrich-Winkel, 80 entries in the bibliography, language: English, abstract: This paper aims at establishing a link between the average level of initial return of IPO shares, existing underpricing explanations and the dot-com bubble. In years prior to the boom of the new economy, underpricing was explained by various theories, which have extensively been developed since decades. However, in the years 1998 to 2001 IPOs were overly underpriced, leading to assumptions about behavioural aspects and investor irrationality. Analysing a comprehensive dataset of 371 IPOs on the Frankfurter B rse between 1997 and 2007, this paper aims at providing evidence that the observed lower levels of initial returns in recent years can indeed be aligned with existing theories on the basis of rational behaviour of market participants. Firstly, the IPO process and its major participants will be presented followed by a review of relevant studies on the IPO phenomenon. In the next step, established underpricing theories are recapitulated. A descriptive analysis of the data sample points out the particularities concerning the company and transaction characteristics of the sample firms. In a last step, a regression analysis relates various proxies for information asymmetry to established underpricing theories. It gives reason to believe that the irrationality at the turn of the century has vanished and that underpricing can again be explained by established theories.

Author : George J. Papaioannou,Ahmet K. Karagozoglu
Publisher : Academic Press
Page : 332 pages
File Size : 50,7 Mb
Release : 2017-07-27
Category : Business & Economics
ISBN : 9780128032831

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Underwriting Services and the New Issues Market by George J. Papaioannou,Ahmet K. Karagozoglu Pdf

Underwriting Services and the New Issues Market integrates practice, theory and evidence from the global underwriting industry to present a comprehensive description and analysis of underwriting practices. After covering the regulation and mechanics of the underwriting process, it considers economic topics such as underwriting costs and compensation, the pricing of new issues, the stock price and operating performance of issuing firms, the evaluation of new issue decisions, and an analysis of the many choices issuers face in structuring new issues. Unlike other books, it systematically develops a critical perspective about underwriting practices, both in the U.S. and international markets, and with a level of detail unavailable elsewhere and an approach that reveals how financial institutions deliver underwriting services. Underwriting Services and the New Issues Market delivers an innovative and long overdue look at security issuance. Foreword by Frank Fabozzi Covers underwriting contracts and arrangements on pricing and costs Focuses on the financial consequences of the issuance decision for the firm Describes and evaluates decisions regarding the features and structure of new security offerings.

Author : Michelle Lowry,Roni Michaely,Ekaterina Volkova
Publisher : Unknown
Page : 180 pages
File Size : 42,5 Mb
Release : 2018-02-28
Category : Business & Economics
ISBN : 1680833405

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Initial Public Offerings: A Synthesis of the Literature and Directions for Future Research by Michelle Lowry,Roni Michaely,Ekaterina Volkova Pdf

The purpose of this monograph on conducting an Initial Public Offering (IPO) is to review the existing evidence and suggest areas where our understanding is less complete of the process and would benefit from further research.

Author : Greg N. Gregoriou
Publisher : Elsevier
Page : 464 pages
File Size : 44,6 Mb
Release : 2011-04-01
Category : Business & Economics
ISBN : 9780080461670

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Initial Public Offerings (IPO) by Greg N. Gregoriou Pdf

After the cooling off of IPOs since the dot com bubble, Google has rekindled the fire for IPOs. This IPO reader contains new articles exclusive to this reader by leading academics from around the world dealing with quantitative and qualitative analyses of this increasingly popular and important area of finance. Articles address new methods of IPO performance, international IPOs, IPO evaluation, IPO underwriting, evaluation and bookbuilding. Although numerous articles are technical in nature, with econometric and statistical models, particular attention has been directed towards the understanding and the applicability of the results as well as theoretical development in this area. This reader will assist researchers, academics, and graduate students to further understand the latest research on IPOs. *Interest in IPOs is increasing again after the Google IPO, and IPOs are up significantly from last year *Chapters by well known academics provide an international perspective, describing research results from IPO data in countries spanning the globe *Research is based on real results from IPO data collected over the past 5-7 years

Author : John C. Burch,Bruce S. Foerster
Publisher : Wolters Kluwer
Page : 1458 pages
File Size : 45,9 Mb
Release : 2005-01-01
Category : Law
ISBN : 9780735550322

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Capital Markets Handbook by John C. Burch,Bruce S. Foerster Pdf

Capital Markets Handbook, Sixth Edition is the definitive desk reference for capital market professionals and a complete resource for anyone working in the financial markets field. Written by seasoned professionals in association with the SIA, Capital Markets Handbook covers the latest developments in major securities legislation, and all aspects of documentation, underwriting, pricing, distribution, settlement, immediate aftermarket trading of new issues, compliance issues, a glossary, a bibliography, and appendices containing the full text of the primary statutes and regulations. The Sixth Edition includes coverage of new developments, including compliance issues such as: New amendments to NASD Rule 2710 ("The Corporate Financing Rule") governing underwriting compensation Updates on PIPE and Registered Direct Transactions Amendments to Rule 10b-18 governing corporate repurchase of equity securities Online Dutch auction procedures in use for the Google, Inc. IPO United Kingdom Financial Service Authority guidance on conflict of interest regarding pricing and allocation issues which have been adopted by one major U.S. investment bank Amendments to Rule 105 Regulation M concerning short selling in connection with public offerings Currency conversion in settlement of a global offering NASD Rule 2790-Restriction on the Purchase and Sale of IPO equity securities NASD IPO Distribution Manager procedures for filing with NASD Corporate Financing Proposed NASD Rule 2712 concerning allocation and distribution of shares in an initial public offering A reorganized compliance chapter in a checklist format designed to ease and enhance CEO and CFO Compliance Certification required by a proposed amendment to NASD Rule 3010 (Supervision) and the adoption of Interpretive Material 3010-1 And more

Author : William Robert Scott
Publisher : Unknown
Page : 440 pages
File Size : 52,6 Mb
Release : 1997
Category : Accounting
ISBN : OSU:32435073299349

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Financial Accounting Theory by William Robert Scott Pdf

Scott reveals vast amounts of financial accounting information drawn from recent research that has until now been hidden in academic journals. He provides a clear, easy-to-use framework for students to (1) place this information in a financial accounting context, (2) explain and analyze the information intuitively and (3) to reveal the informationOs relevance in understanding the practice of accounting.

Author : Elena Ferrer
Publisher : Ed. Universidad de Cantabria
Page : 86 pages
File Size : 48,8 Mb
Release : 2017-04-26
Category : Business & Economics
ISBN : 9788481028010

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Investor Sentiment Effect in European Stock Markets by Elena Ferrer Pdf

La presente obra se adentra en el estudio del potencial efecto del sentimiento del inversor sobre la valoración de activos, su efecto en los pronósticos de beneficios y recomendaciones de los analistas y su impacto sobre los activos derivados. Abarca el efecto del sentimiento del inversor en cuatro de los mercados europeos más importantes, Alemania, España, Francia y Reino Unido, mercados con características diferentes, en cuanto a tamaño, tipología del inversor y funcionamiento, lo que permite extraer importantes conclusiones adicionales.

Author : William Quinn,John D. Turner
Publisher : Cambridge University Press
Page : 297 pages
File Size : 46,6 Mb
Release : 2020-08-06
Category : Business & Economics
ISBN : 9781108421256

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Boom and Bust by William Quinn,John D. Turner Pdf

Why do stock and housing markets sometimes experience amazing booms followed by massive busts and why is this happening more and more frequently? Boom and Bust reveals why bubbles happen, and why some bubbles have catastrophic economic, social and political consequences, whilst others have actually benefited society.

Author : Georgi Georgiev
Publisher : GRIN Verlag
Page : 89 pages
File Size : 51,8 Mb
Release : 2012-06
Category : Business & Economics
ISBN : 9783656208907

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The Role of the Underwriter in the Initial Public Offering Process by Georgi Georgiev Pdf

Bachelor Thesis from the year 2005 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,7, Martin Luther University, 38 entries in the bibliography, language: English, abstract: The world of finance is complex. There are many aspects, which cannot be fully explained and still confuse the researchers. One of the most discussed topics is that of Initial Public Offerings (IPO) mainly because of the intricate connections between investment bankers (underwriters), issuers and buyers. This paper will try to summarize the whole process of going public and emphasize on the role of the (lead) underwriter in it. The paper discusses mainly the American "way" of going public, but the procedure is generally the same for the European market with some differences that are explained in the text. The advantages, disadvantages and the legal requirements for going public are enlightened, in order of understanding the important role, which the underwriter plays in the whole process. The structure and the legal consequences of the due diligence process are presented. The types of agreement between the underwriter and the issuer are described, with the consequences that originate from them. The ways of determining the price and the advantages and disadvantages of any of them are presented, with respect to the importance of the underwriter's role in them and the liabilities that she has. The problem with the underpricing is discussed more detailed, since this is one of the big challenges in the IPO process. Some theories that explain this phenomenon are briefly discussed, showing the mechanism that is behind the underpricing problem. Some of the unlawful allocation practices are listed, with examples that show that even the top underwriters use prohibited actions to ensure the successful completion of the IPO process. The importance of the pre-opening period for the determination of the right market price and the active participation of the underw

Author : Douglas Cumming,Sofia Johan
Publisher : Oxford University Press
Page : 504 pages
File Size : 49,5 Mb
Release : 2018-11-15
Category : Business & Economics
ISBN : 9780190614584

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The Oxford Handbook of IPOs by Douglas Cumming,Sofia Johan Pdf

Initial public offerings (IPOs), or new listings of companies on stock exchanges, are among the most important form of finance and generate considerable attention and excitement. They are used to raise capital or to monetize investments by the early generation of venture capital and other private investors. They are increasingly international in scope and reach, especially with non-American firms offering on American stock exchanges. This handbook provides a comprehensive overview of why companies list on stock exchanges, how IPOs are regulated, initially valued, and their performance in the short and long run. The first part examines the economics of IPOs, and offers statistics and regulatory insights from the United States and other countries around the world. The volume then covers mergers versus IPOs, as well as reverse mergers and special purpose acquisition companies. Part III analyzes institutional ties in IPOs, including analysts, investment banks, auditors, and venture capitalists. The fourth section provides international perspectives on IPOs from a number of countries around the world. Part V discusses alternatives to IPOs, including private marketplaces, and crowdfunding. Reflecting the range of disciplines that analyze IPOs, the contributors come from the fields of finance, international business and management, economics, and law. The chapters cover the latest information on a range of fundamental questions that are of interest to academics, practitioners, and policymakers alike.