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Initial Public Offerings: The mechanics and performance of IPOs by Arif Khurshed

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Chapter 4: The Performance and Survival of IPOs

In this chapter I discuss some interesting anomalies associated with IPOs such as short-run underpricing and long-run underperformance. Academics around the world have devoted a lot of effort to documenting and explaining reasons for such anomalies. I summarise some of the important explanations for such anomalies.

In the second part of the chapter I focus on the survival of IPO firms. This is one area which is quite under-researched, but it is of immense importance when looking at IPOs. The final section of the chapter provides an analysis of the performance of UK privatisation IPOs.

4.1 How IPOs perform when trading in their shares commences

We now shift our focus to some interesting facts ...

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