You Scratch My Back and I Scratch Yours: Evidence on Relationship-Based Bidding in IPO Pricing

2022 ◽  
Author(s):  
Wenjun Wang
Keyword(s):  
Ipo Pricing

Is the IPO pricing process efficient?

2004 ◽  
Vol 71 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Michelle Lowry ◽  
G.William Schwert
Keyword(s):  
Pricing Process ◽  
Ipo Pricing

scholarly journals IPO Pricing in the Dot-com Bubble

2003 ◽  
Vol 58 (2) ◽  
pp. 723-752 ◽  
Author(s):  
Alexander Ljungqvist ◽  
William J. Wilhelm
Keyword(s):  
Ipo Pricing ◽  
Dot Com

Pre-Market and IPO Pricing: Evidence from Taiwan

2014 ◽  
Author(s):  
Chun Chang ◽  
Yao-Min Chiang ◽  
Yiming Qian ◽  
Jay R. Ritter
Keyword(s):  
Ipo Pricing

scholarly journals Biases in the IPO Pricing Process

2001 ◽  
Author(s):  
Michelle B. Lowry ◽  
G. William William Schwert
Keyword(s):  
Pricing Process ◽  
Ipo Pricing

scholarly journals IPO Pricing Phenomena: Empirical Evidence Of Behavioral Biases

2011 ◽  
Vol 6 (4) ◽  
Author(s):  
Michael Adams ◽  
Barry Thornton ◽  
George Hall
Keyword(s):  
Initial Public Offering ◽  
Behavioral Finance ◽  
Efficient Market Hypothesis ◽  
Class Action ◽  
Investment Horizon ◽  
Efficient Market ◽  
The Past ◽  
Ipo Pricing ◽  
Public Offering ◽  
Substandard Performance

Does IPO stand for Instant Profit Opportunity or It’s Probably Over-priced?  The conundrum is that both answers are generally correct.  The answer appears to depend on the investor’s investment horizon.  This realization provides an enigma for the Efficient Market Hypothesis (EMH) proponents. It is widely known that initial public offering (IPO) stocks in the past have typically been underpriced, thereby allowing the fortunate purchaser to buy the shares in the primary market and systematically beat the stock market averages. This phenomenon is evidenced by the average one-day returns on IPOs of 15% and presents a puzzle to efficient market advocates. Behavioral finance posits that the same underpriced IPO stocks will under-perform the market and deliver substandard performance during the ensuing one to three years. At a minimum, the “new-issues puzzle” presents a challenge to the EMH and has given rise to many class-action stockholder lawsuits alleging illegal price manipulation.   Why under-pricing systematically happens and why issuing firms/major shareholders choose to leave copious amounts of money on the table is not well explained by traditional financial theory.  Behavioral finance melds together investor psychology and normative financial theory in an attempt to explain this market enigma.

scholarly journals A Preliminary Study of the Emerging and Developing Stock Market of China

2014 ◽  
Vol 2 (1) ◽  
pp. 100
Author(s):  
Hai Long
Keyword(s):  
Stock Market ◽  
Foreign Currency ◽  
Chinese Stock Market ◽  
Significant Development ◽  
Listed Firms ◽  
Ipo Performance ◽  
Growth Enterprise Market ◽  
New Findings ◽  
Ipo Pricing ◽  
Preliminary Study

<p><em>The Chinese share market as an emerging and fast-growing listing venue has experienced a significant development since 2000.Prior studies on this market overwhelmingly concentrate on IPO-pricing-related and post-IPO performance-based propositions with lagging data. Adopting the updated data within the last couple of years, this paper comprehensively explores and accounts for some striking features of the Chinese stock market, and unfolds</em><em> </em><em>some new causes contributing to these characteristics.</em></p> <p><em>Some new findings are revealed. 1)</em><em> </em><em>Two new factors may lead to the extreme under</em><em> </em><em>pricing in China’s</em><em> </em><em>market, which are</em><em> </em><em>the unseasoned investor</em><em> </em><em>sand their high demands of IPO shares. 2)</em><em> </em><em>The foreign-currency trading platform is not effective and efficient to attract the overseas investors.</em><em> </em><em>3)</em><em> </em><em>The imbalanced industry structure of the listed firms is very significant, the Chinese share market is dominated by the manufacturing firms.4)</em><em> </em><em>The Growth Enterprise Market of China is essential to address the long-standing financing difficulties for the Chinese Small and Medium-sized Enterprises, which are unqualified to raise capital from the Primary Stock Market.</em></p>

Does customer concentration disclosure affect IPO pricing?

2019 ◽  
Vol 28 ◽  
pp. 363-369 ◽  
Author(s):  
Xuan Peng ◽  
Xiongyuan Wang ◽  
Kam C. Chan
Keyword(s):  
Ipo Pricing
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