Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2013

Abstract

This paper examines the aftermarket performance of initial public offerings (IPOs) and explores the underpricing of IPOs in an Asian emerging equity market using a comprehensive sample of IPOs. Our findings suggest that there exist a significant underpricing. Specifically, new issues have been offered at an average market-adjusted discount of about 20%. The magnitude of IPO underpricing is significantly larger for large firms, older firms and firms with small offering size.

Keywords

Initial Public Offerings, Underpricing, Aftermarket Performance, Market Efficiency

Discipline

Asian Studies | Finance and Financial Management

Research Areas

Finance

Publication

International Research Journal of Finance and Economics

Volume

103

First Page

86

Last Page

99

ISSN

1450-2887

Publisher

IRJFE

Copyright Owner and License

Authors

Additional URL

http://www.internationalresearchjournaloffinanceandeconomics.com/ISSUES/IRJFE_Issue_103.htm

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