In this article we seek to answer several important questions: How does the involvement of anchor investors affect underpricing? How do anchor investors decide in which issues to request allocations?
We exploit the legal reform to investigate whether the introduction of anchor investors lowers underpricing and valuation uncertainty and generates higher risk-adjusted returns in the long run.
The paper aims to analyze two main anomalies related to IPOs: underpricing
and long run underperformance.
an IPO may have strategic benefits of creating demand, it has its own limitations.
Indeed, an adverse effect of detariffication is the underpricing
of insurance premiums, which could affect the companies' capital standing.
and long-term market performance of initial public offerings in Indonesia: A quantile regression approach.
Among these anomalies, most important are IPO underpricing
and IPO underperformance.
Summary: Analysts say investors underpricing
different outcomes of UK elections
Ritter (1984, 1991) asserts that there are three anomalies inherent in the IPO setting, namely short term underpricing
, cycle in volume, and long-term underperformance.
The purpose of this research is to investigate the influence of board structure and diversity on underpricing
in the initial public offering (IPO) process.
is costly because it transfers wealth from preexisting shareholders (including the venture capitalists) to new shareholders.
The topic of underpricing
of initial public offerings (IPOs) in developed and emerging markets has been of interest to academics, researchers, and practitioners for decades.