Arbeitspapier
Underpricing and Index Excess Returns
We study the link between underpricing of initial public offerings (IPOs) and index excess returns in secondary markets. We use a theoretical model to argue that underpricing of IPOs raises investors' attention and, thereby, triggers investments in secondary markets. Our theoretical model implies that such investments should give rise to positive index excess returns in secondary markets. The results of our empirical tests, based on a dataset of stocks from the Neuer Markt and the Nouveau Marché, are in line with the implication of our theoretical model.
- Language
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Englisch
- Bibliographic citation
-
Series: Kiel Working Paper ; No. 1259
- Classification
-
Wirtschaft
Economic History: Financial Markets and Institutions: Europe: 1913-
Information and Market Efficiency; Event Studies; Insider Trading
- Subject
-
underpricing
index excess returns
IT firms
Börsenkurs
Wertpapieremission
Kapitalertrag
Aktienindex
Neuer Markt
Schätzung
Theorie
Deutschland
Frankreich
Sekundärmarkt
- Event
-
Geistige Schöpfung
- (who)
-
Nippel, Peter
Pierdzioch, Christian
Schertler, Andrea
- Event
-
Veröffentlichung
- (who)
-
Kiel Institute for World Economics (IfW)
- (where)
-
Kiel
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Nippel, Peter
- Pierdzioch, Christian
- Schertler, Andrea
- Kiel Institute for World Economics (IfW)
Time of origin
- 2005
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