36 month buy-and-hold returns are calculated for a recent sample of initial public offerings (IPOs) on UK stock markets in order to test the robustness of earlier results which suggest that IPOs deliver abnormally low long-run returns. A bootstrapped and skew-adjusted t statistic is employed. Overall, there is little evidence of significant abnormal long-run performance. Further tests reveal th...

Using a proprietary database of institutional investor bidding for shares in Chinese IPO allocations, we examine the information content and predictive ability of bidding dispersion. IPOs with higher levels of bid dispersion experience greater first-day return than other IPOs by discounting the offer price as a compensation for investors’ bearing valuation uncertainty and estimation risk, as we...

We analyze the impact of capacity constraints on IPO underpricing in the US property and liability (P&L) insurance industry. Our results show that insurer IPOs experience much less underpricing when insurers go public during capacity-constrained periods. Monte Carlo simulation shows that IPOs in other industries do not exhibit similar traits, suggesting our findings are specific to the P&L insu...

Both theory and economic intuition suggest that newly listed firms differ from seasoned ones as potential takeover targets. We identify significant differences between the two groups of firms in this regard: (i) IPOs are more likely to be acquired than are seasoned firms, (ii) IPO targets receive higher acquisition premiums, and (iii) IPO targets are associated with greater synergy. These obser...

Initial Public Offerings (IPOs) in the United States have been mainly underwritten and sold using the bookbuilding method; a method inherently riddled with inefficiencies and information asymmetries. Consequently, IPOs in the U.S. (and other countries for that matter) have been persistently underpriced, at the expense of both the issuing firm and public investors. Alternative underwriting proce...

Using a sample of 204 UK initial public offerings (IPOs), we empirically analyze the motive for and the timing of IPO decision by examining the determinants of IPO structure. Linked to IPO structure, the determinants of underpricing and the pattern of seasoned equity offerings (SEOs) are also investigated. The data reveal that younger and smaller firms tend to go public primarily for financing ...

In the past few years, there has been a growth in Internet markets run by online investment bankers, where companies and investors can buy and sell initial public offerings (IPOs) of corporate stock. In this study, we confine our examination to the first of what we anticipate will be several phases in the evolution of Internet IPOs: the online distribution of shares. This implies the beginning ...

The evidence reported in this paper suggests that institutional investors capture a large fraction of the short-run profits associated with IPOs. The favored status enjoyed by institutional investors in underpriced offerings appears, however, to carry a quid pro quo expectation that they will participate in less-attractive issues as well. This finding conforms with the Benveniste and Spindt (19...

We describe the architecture of iPOS (short for iPAQ Positioning System), a fault-tolerant and adaptive self-positioning system with quality-of-service guarantees for resource-limited mobile devices. The architecture is based on a novel sensor modelling technique in combination with a probabilistic data-fusion engine, which is capable of efficiently combining the location information obtained f...

Both the IPO literature and cross listing literature document that soon after the overseas listing of IPOs, the results are negative abnormal returns, and that phenomenon are “ post listing anomaly”. This paper checks whether there is a post listing anomaly and tries to find reasons for it. The paper concludes that the post listing anomaly does not exist. Further, some companies time the market...