Original scientific paper
https://doi.org/10.1080/1331677X.2023.2179506
IPO underpricing from the institutional investor perspective: evidence from emerging markets
Riste Ichev
Abstract
This paper examines IPO underpricing from the institutional
investor perspective in emerging markets. Observing market
adjusted returns for several countries, industries, and years, results
show evidence that the underpricing phenomenon is present
across all emerging markets, averaging at 30.29% on the first
trading day, and 27.98% for the first trading month. Underpricing
particularly stands out in China, for the Basic Materials industry,
during the 2007/2008 financial crisis period, increases with higher
levels of property rights protection and decreases in countries
with relatively more freedom from corruption. Underpricing is
positively related to a country’s legal framework and negatively
related to the number of IPOs.
Keywords
IPO; underpricing; emerging markets; market adjusted returns
Hrčak ID:
306489
URI
Publication date:
31.3.2023.
Visits: 540 *