The Partial Adjustment Of IPO Offer Prices Is Not Due To Dynamic Information Acquisition

Topics:
IPO
Tags:
Acquisition,
Adjustment,
Finance,
Financial Planning,
Financial Services,
Investment,
IPO,
Offer Price
Source:
University of Florida

FREE Registration is required

Overview: This paper examines the magnitude of IPO (Initial Public Offerings) offer price revision relative to the change in firm value during the registration period. An analysis of 1,122 IPOs with upward price adjustment during 1985- 2003 indicates that on average only 42% of the change in firm value during the registration period was incorporated into offer prices, with this ratio dropping to 29% during the bubble period of 1999-2000. Substantial variation in the efficiency of offer price adjustment across IPOs and over time was documented, and test three hypotheses concerning the incorporation of information into offer prices.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 275KB | Date: Nov 2005 | Pages: 45

People who downloaded this item also downloaded

White Paper A Theory Of IPO Underpricing, Issue Activity, And Long-Run Underperformance
White Paper Security Design In Initial Public Offerings
White Paper IPO Pricing And Allocation: A Survey Of The Views Of Institutional Investors
White Paper The Employees Provident Fund of Malaysia: Asset Allocation, Investment Strategy and Governance Issues Revisited

Top results from IPO

White Paper New Insider Threat Emerges in the New Economy
White Paper A Case Study Of IPO Valuation
White Paper IPO Underpricing To Buy Holding
White Paper Differences Between European And American IPO Markets
White Paper Roadmap For An IPO: A Guide To Going Public

» View all IPO listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).