MARKET TO BOOK VALUE, FIRM SIZE, AND THE UNDERPRICING OF INDONESIAN INITIAL PUBLIC OFFERINGS
نویسندگان
چکیده
منابع مشابه
Employee Stock Options and the Underpricing of Initial Public Offerings
The central question surrounding the IPO underpricing puzzle is why issuers are willing to sell their shares at a price that is less than what the market is willing to pay. This paper shows that a major reason why managers are willing to underprice shares at IPO is that they use options and stock grants to protect themselves from the dilution to their existing shares. Underpricing can have a la...
متن کاملEmployee Stock Options and the Underpricing of Initial Public Offerings
The central question surrounding the IPO underpricing puzzle is why issuers are willing to sell their shares at a price that is less than what the market is willing to pay. This paper shows that a major reason why managers are willing to underprice shares at IPO is that they use options and stock grants to protect themselves from the dilution to their existing shares. Underpricing can have a la...
متن کاملThe Determinants of Underpricing: Initial Public Offerings on the Neuer Markt and the Nouveau Marché
This paper analyses the determinants of underpricing of firms that went public on the Nouveau Marché between 1996 and 2000 and on the Neuer Markt between 1997 and 2000. Evidence suggests that firms that went public on the Nouveau Marché experienced lower underpricing than their counterparts that went public on the Neuer Markt. This difference in underpricing is partly explained by the different...
متن کاملIs Underpricing Greater for Mixed Offerings as Compared to Pure Primary Offerings in the Otc Market
The existence of "underpricing" has been established by a number of empirical studies in the case of common stock initial public offerings (CSIPOs). The after-market prices of such common stocks have consistently been found to be higher than their corresponding offering prices. However, these papers appear to have concentrated on examining the underpricing in the case of CSIPOs as a whole even ...
متن کاملValuation and Underpricing of Initial Public Offerings: Role of Discretionary Accounting Accruals
This study examines the role of pre-IPO discretionary accruals in the valuation and underpricing of IPOs. We find that IPO offer price is unaffected whereas market closing price is positively associated with the levels of pre-IPO discretionary accruals for issuers with aggressively reported earnings. We also find that this relative over-valuation of managed earnings by the markets explains a po...
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ژورنال
عنوان ژورنال: Review of Management and Entrepreneurship
سال: 2019
ISSN: 2548-3552,2548-3536
DOI: 10.37715/rme.v2i2.964