WHY EXTREME UNDERPRICINGS OCCURRED? EVIDENCE FROM JAPANESE IPO MARKET

Home Page
About
Submit A Journal
Submit A Conference
Submit Paper/Book
- Submit a Preprint
- Submit a Book
Contact

Dokuz Eylül Üniversitesi İşletme Fakültesi Dergisi
Volume:5 Issue:2
WHY EXTREME UNDERPRICINGS OCCURRED? EVIDENCE FROM JAPANESE IPO MARKET

WHY EXTREME UNDERPRICINGS OCCURRED? EVIDENCE FROM JAPANESE IPO MARKET

Authors : Berna KIRKULAK

Pages : 0-0

View : 50 | Download : 12

Publication Date : 2004-06-01

Article Type : Other Papers

Abstract :This paper empirically examines the determinants of increase in the first day return of Japanese initial public offerings (IPOs) during 1997-2001 in TSE, Jasdaq, Mothers, Hercules (former Nasdaq Japan) and regional stock exchange markets. Initial return investigation focuses on pre-market conditions during the filing procedures. The findings show that the highest limit stocks are positively correlated with initial returns. The boom of high-tech IPO firms affects pre-market activities and high initial returns make pre-markets competitive for underwriters. Further analysis confirms that shareholders avoid wealth losses by offering few shares due to high underpricing expectations.
Keywords : Initial Offer Pricing, Underpricing

ORIGINAL ARTICLE URL

* There may have been changes in the journal, article,conference, book, preprint etc. informations. Therefore, it would be appropriate to follow the information on the official page of the source. The information here is shared for informational purposes. IAD is not responsible for incorrect or missing information.