Deliberate premarket underpricing and aftermarket mispricing: new insights on IPO pricing

We decompose initial returns into deliberate premarket underpricing and aftermarket mispricing using stochastic frontier analysis. We model deliberate underpricing as a function of proxies of information asymmetry surrounding IPO value between market participants. Equity retained is an unlikely sign...

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Bibliographic Details
Main Authors: Reber, Beat, Vencappa, Dev
Format: Article
Published: Elsevier 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/50933/