Object

Title: IPOs – not so much money on the table. The cost compensation hypothesis.

Creator:

Zaremba, Adam ; Kamiński, Karol

Description:

Argumenta Oeconomica, 2011, Nr 1 (26), s. 149-176

Abstrakt:

One of the most extensively documented anomalies concerning initial public offerings is IPO underpricing. Although the phenomenon is well analyzed and explained, most of the research ignores an individual investor's costs, constraints and perspective. We suppose that after taking these issues into consideration, there may be not much money left on the table. The paper consists of three main parts. First, we characterize IPO underpricing anomaly and review the performance patterns from many countries together with their theoretical explanations. In the second section, we indicate the usually ignored issues which may potentially significantly impede IPO investments. The last part of the paper presents the empirical analysis based on 209 offerings in the Polish stock market between 2001 and 2010. The paper comes to the conclusion that high IPO returns result from just a few outliers and are not significantly higher than the benchmark returns. As we have hypothesized, IPO underpricing seems to be just a compensation for costs and time constraints faced by investors

Publisher:

Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu

Place of publication:

Wrocław

Date:

2011

Resource Type:

artykuł

Resource Identifier:

oai:dbc.wroc.pl:35649

Language:

eng

Relation:

Argumenta Oeconomica, 2011, Nr 1 (26)

Rights:

Wszystkie prawa zastrzeżone (Copyright)

Access Rights:

Dla wszystkich w zakresie dozwolonego użytku

Location:

Uniwersytet Ekonomiczny we Wrocławiu

Group publication title:

Argumenta Oeconomica

Format:

application/pdf

Object collections:

Last modified:

May 26, 2022

In our library since:

Dec 5, 2016

Number of object content hits:

135

Number of object content views in PDF format

131

All available object's versions:

https://www.dbc.wroc.pl/publication/39109

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