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Initial Public Offerings (IPO)
book

Initial Public Offerings (IPO)

by Greg N. Gregoriou
December 2005
Intermediate to advanced content levelIntermediate to advanced
464 pages
23h 14m
English
Butterworth-Heinemann
Content preview from Initial Public Offerings (IPO)
The initial underpricing of IPOs appears in fact substantial. Welch and Ritter (2002)
and Loughran and Ritter (2004), for example, distinguish the 1980s, the 1990 to
mid-1990 period, the mid-1990 to 1998 period, the Internet bubble years 1999 to
2000, and the years thereafter. For the US, average initial first-day returns are docu-
mented as follows: 7.4% for 1980 to 1989, 11.2% for 1990 to 1994, 18.1% for
1995 to 1998, 65.0% for 1999 to 2000, and 14.0% for 2001. Loughran and Ritter
(2004) attribute this time-variation in part to the characteristics of the companies
going public. Ljungqvist and Wilhelm (2002) found similar effects, particularly for ...
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Publisher Resources

ISBN: 9780750679756