Initial Public Offerings in Germany between 1997 and 2015

2018 ◽  
pp. 558-572
Author(s):  
Andreas Oehler ◽  
Tim Herberger ◽  
Matthias Horn
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Market Liquidity ◽  
Subprime Crisis ◽  
Market Returns ◽  
Stock Market Returns ◽  
Public Offerings ◽  
German Stock ◽  
German Stock Market ◽  
Dot Com

This chapter focuses on the German IPO market from 1997 to 2015. More specifically, it provides a descriptive overview of the IPO activities in Germany in the last two decades, and analyzes the IPO market’s dependence on the yearly return and turnover of the German stock market. It shows that most IPOs and highest volumes were observed during the dot-com bubble phase (1997–2000) and that the German IPO market’s liquidity shows a stable development in the last years after the subprime crisis. The results of the regression analyses show that the IPO market activity strongly depends on the overall stock market turnover. But the stock market returns play a subordinated role for the IPO market liquidity in Germany.

scholarly journals IPO Waves: How Market Performances Influence The Market Timing Of IPO?

2015 ◽  
Vol 31 (5) ◽  
pp. 1679
Author(s):  
Firas Batnini ◽  
Moez Hammami
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Market Timing ◽  
Autocorrelation Analysis ◽  
Market Returns ◽  
Stock Market Returns ◽  
Public Offerings ◽  
One Year ◽  
The Impact

The goal of this paper is to study the impact of stock markets on Initial Public Offerings (IPOs). Several studies have shown that the need for financing is not the main trigger for an IPOfavorable market conditions may play a more important part. This work prove the existence of a significate relationship between past stock market returns and the number of IPOs. Before setting the date for an IPO, managers analyze long term financial market yields, a bullish stock market over a six month/ one year period encourages IPOs activities. In the other hand, even a negative performance but over a two-year period may have the same effect. They expect a stock market inversion. These results were obtained by autocorrelation analysis and count regression.

The Rise and Fall of the German IPO Market, 1870-1938

2018 ◽  
Vol 59 (1) ◽  
pp. 9-37
Author(s):  
Carsten Burhop ◽  
David Chambers ◽  
Brian Cheffins
Keyword(s):  
World War Ii ◽  
Stock Market ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
World War ◽  
Stock Market Development ◽  
Public Offerings ◽  
German Stock ◽  
The Impact ◽  
German Stock Market

Abstract This study of over 1,000 initial public offerings (IPOs) on the Berlin stock exchange from German unification to the eve of World War II draws attention to the importance of regulation and deepens our understanding of German stock market development. An increasingly exacting regulatory environment from the early 1880s to 1914 made a vital contribution to the higher likelihood of firms going public surviving. In the inhospitable regulatory setting of the 1930s, IPO activity drew to a halt and the development in the German stock market over the preceding decades reversed. As a complement to our analysis of the impact of regulation, we document the increased involvement of leading universal banks (D-banks) in the IPO market over the whole period.

scholarly journals CHALLENGES TO CHINA'S NEW STOCK MARKET FOR SMALL AND MEDIUM-SIZE ENTERPRISES: TRADING PRICE FALLS BELOW THE IPO PRICE

2014 ◽  
Vol 19 (Supplement_1) ◽  
pp. S409-S424 ◽  
Author(s):  
Haifeng Guo ◽  
Tienan Wang ◽  
Yijun Li ◽  
Hung-Gay Fung
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Medium Size ◽  
Probability Models ◽  
Market Returns ◽  
Stock Market Returns ◽  
Public Offerings ◽  
Turnover Ratio ◽  
Non Linear

This study discusses the development of the Growth Enterprise Board (GEB), a part of the Shenzhen Stock Exchange (SZSE), which allows small and medium-size enterprises (SMEs) to raise capital on favourable terms by issuing shares in China. We use all initial public offerings (IPOs) in the GEB market to model the probability of the trading price for new issues that will fall below their IPO price from October 2009 to December 31, 2011. Three probability models (logit, probit and scobit models) are used. The results show that four important factors explain the probability of trading price falling below their IPO price. A high first-day turnover ratio, a small price update, an optimistic stock market, and high average initial returns of other firms prior to an IPO issue all reduce the risk that the trading price will fall below the IPO price. The stock market returns have a non-linear significant effect on that probability. Our results are useful for regulators, underwriters, and issuers in the development of the GEB market.

scholarly journals Decision Analytics for Initial Public Offerings: How Filing Sentiment Influences Stock Market Returns

2021 ◽  
pp. 45-67
Author(s):  
Jonas Krinitz ◽  
Dirk Neumann
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Relevant Information ◽  
Market Returns ◽  
Stock Market Returns ◽  
Decision Analytics ◽  
Public Offerings ◽  
Public Offering

AbstractCompanies issuing stocks through an initial public offering (IPO) are obligated to publish relevant information as part of a prospectus. Besides quantitative figures from accounting, this document also contains qualitative information in the form of text. In this chapter, we analyze how sentiment in the prospectus influences future stock returns. In addition, we investigate the impact of pre-IPO sentiment in financial announcements on first-day returns. The results of our empirical analyses using 572 IPOs from US companies suggest a negative link between words linked to uncertainty and future stock market returns for up to 10 trading days. Conversely, we find that uncertainty expressed in pre-IPO announcements is positively linked to first-day stock returns. These insights have implications for research on IPOs by demonstrating that future stock returns are also driven by textual information from the prospectus and assist investors in placing their orders.

scholarly journals The Standard Portfolio Choice Problem in Germany*

2021 ◽  
Author(s):  
Christoph Breunig ◽  
Steffen Huck ◽  
Tobias Schmidt ◽  
Georg Weizsäcker
Keyword(s):  
Stock Market ◽  
Portfolio Choice ◽  
Laboratory Experiments ◽  
Task Complexity ◽  
Real Life ◽  
Choice Problem ◽  
Market Returns ◽  
Stock Market Returns ◽  
German Stock ◽  
German Stock Market

Abstract We study an investment experiment with a representative sample of German households. Respondents invest in a safe asset and a risky asset whose return is tied to the German stock market. Experimental investments correlate with beliefs about stock market returns and exhibit desirable external validity at least in one respect: they predict real-life stock market participation. But many households are unresponsive to an exogenous increase in the risky asset’s return. The data analysis and a series of additional laboratory experiments suggest that task complexity decreases the responsiveness to incentives. Modifying the safe asset’s return has a larger effect on behaviour than modifying the risky asset’s return.

Zielkonflikte bei Aktienerstemissionen?

2018 ◽  
Vol 59 (1) ◽  
pp. 39-76
Author(s):  
Boris Gehlen
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Self Regulation ◽  
Regulatory System ◽  
State Regulation ◽  
Stock Exchanges ◽  
Public Offerings ◽  
German Stock ◽  
Market Practices ◽  
German Stock Market

Abstract The law & finance literature often assumes that financial institutions in Germany, especially in the stock market, were less workable than for example in the U.S. or Great Britain due to extensive state regulation. This article analyses the regulation and admission to listing practices for (initial) public offerings in Germany from 1870 to 1932. It argues, by contrast, that state regulation in the German stock market largely enabled self-regulation and that a closer look at market practices indicates that the written law only offered a framework and left the stock exchanges great scope for manoeuvre. In the end, the German regulatory system came close to what law & finance literature describes as a most efficient market order.

Makroökonomische Nachrichten und die Reaktion des 15-Sekunden-DAX: Eine Ereignisstudie zur Wirkung der ZEW-Konjunkturprognose / Announcement of Business Cycle Forecasts and the Reaction of the German Stock Market

2007 ◽  
Vol 227 (1) ◽  
Author(s):  
Horst Entorf ◽  
Christian Steiner
Keyword(s):  
New York ◽  
Stock Market ◽  
Business Cycle ◽  
High Efficiency ◽  
Stock Exchange ◽  
Good News ◽  
Stock Market Index ◽  
Stock Market Returns ◽  
German Stock ◽  
German Stock Market

SummaryWe study the response of the German stock market index DAX to the announcement of macroeconomic business cycle forecasts. Returns are computed using high-frequency data observed for 15-second intervals. Publications of macroeconomic US indicators at 2:30 p.m. (CET) have temporary and opening of the New York Stock Exchange at 3:30 p.m. (CET) have permanent effects on the volatility of the German DAX. Moreover, the intraday volatility of the DAX index has a U-shaped form, which has also been identified for other international stock markets. Major reactions of both returns and volatility occur within the first 15 to 60 seconds after the announcement, revealing a high efficiency of the German capital market. Unanticipated shocks cause asymmetric stock market returns: “good” news lead to more pronounced reactions than “bad” news. Moreover, there is evidence of mean reversion and calm-before-thestorm effects. Finally, serial correlation of returns is found to be a potentially spurious result of non-anticipated announcements of macroeconomic news.

Sign in / Sign up

Export Citation Format

Share Document