4.2IPO performance during different time intervals
There are many studies that have analyzed the underpricing and performance of IPOs
over different time intervals. Many studies have concluded that in the very short run –
a few days after the issue of shares – the price increases, but the results are mixed for
the long-run performance of IPOs. A key paper by Ritter (1998) discussed the short-
run underpricing of IPOs. Ibbotson (1975) studied IPOs of the 1960s, while Eckbo
and Norli (2005) investigated the risk-return features of IPO investment strategies.
Chi and Padgett (2005) explored the short-term underpricing of Chinese IPOs using
data on 668 ...
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