Variables Influencing the Severity of IPO Underpricing.
Hauptbeschreibung Underpricing refers to the phenomenon of abnormal first-day returns from initial public offerings (IPOs). Without doubt, any US investor would agree that one day-returns of 11.4% on average are exceptional and a worthwhile investment. Since then many studies have proven that it is...
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Full Text (via ProQuest) |
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| Format: | eBook |
| Language: | English |
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Hamburg :
Diplomica Verlag,
2012.
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Table of Contents:
- Variables Influencing the Severity of IPO Underpricing: An Empirical Analysis of the German Market; Acknowledgements; Table of Content; List of Figures; List of Tables; List of Appendices; List of Abbreviations; List of Symbols; 1 Introduction; 2 Theoretical Aspects of an IPO; 2.1 Definition of an IPO; 2.2 The IPO Price Setting Process; 2.2.1 Business Valuation; 2.2.2 Share Pricing; 2.3 The Special Role of the Underwriter in the IPO Process; 3 IPO Underpricing; 3.1 Definition of IPO Underpricing and Empirical Evidence; 3.2 The Winner's Curse Hypothesis; 3.3 Market Feedback Hypothesis.
- 3.4 Bandwagon Hypothesis3.5 Lawsuit Avoidance; 3.6 Signalling; 3.7 Investment Banker's Monopsony Power; 3.8 Principal Agent Problem; 3.9 Prospect Theory; 3.10 Anchoring; 4 Long-Run Performance and Overvaluation of IPOs; 4.1 Evidence on Initial Investor Overoptimism; 4.2 Reasons for Initial Overvaluation; 4.2.1 Overreaction Hypothesis; 4.2.2 Representativeness Heuristic; 4.2.3 Divergence of Opinion Hypothesis; 4.2.4 Big Winner Hypothesis; 4.2.5 Underwriter Conflict of Interest; 4.2.6 Window-Dressing; 5 Empirical Analysis of Underpricing in Germany; 5.1 Development of Explanatory Variables.
- 5.1.1 Management Ownership5.1.2 Pre-Market Demand; 5.1.3 Recent Market Movements; 5.1.4 Underwriter Reputation; 5.1.5 Industry, Company Age and Firm Size; 5.2 Theoretical Model and Statistical Method; 5.3 Data and Descriptive Statistics; 5.4 Results and Interpretation; 5.4.1 Management Ownership; 5.4.2 Pre-Market Demand; 5.4.3 Recent Market Movements; 5.4.4 Underwriter Reputation; 5.4.5 Industry, Company Age and Firm Size; 6 Conclusion; Bibliography; List of Online Sources and Software; Appendix; Autorenprofil.