IPO Underpricing in Germany - Empirical Analysis of Influencing Variables.pdf

IPO Underpricing in Germany - Empirical Analysis of Influencing Variables

Justyna Dietrich

Detected on the US market centuries ago, underpricing is the phenomenon of abnormal first-day returns from initial public offerings (IPOs). Without doubt, any US investor would agree, that one day-returns of 11.4% on average are exceptional and a worthwhile investment. Since then many studies have proven that it is a persistent phenomenon and also occurs on markets all over the world.
The most puzzling question for scientists is why companies are leaving this money on the table and don t set an offering price that reflects the market demand at the offering date. Within that, researchers have also been trying to determine the factors that influence the severity of underpricing. Many different explanations with regard to the existence of underpricing have been derived thus far, with all claiming to be valid even if not exclusively. But despite this effort, research so far has not been able to create common sense. Some even argue that underpricing may not exist at all since most IPOs underperform severely in the long-run which leads some people to the conclusion that IPOs are in fact overpriced.
The main focus of this paper is whether and how the findings of past research, primarily conducted for the US market, apply to the German IPO market. As a result, both investors and issuers shall receive practical implications for their decision-making within the IPO process.
So far, profound underpricing research for the German market has been rather scarce. Most of the available literature concentrates either on dates before 1997 when most offering prices have been determined by using the fixed price mechanism whereas the most recent studies focus on the German stock exchange segment Neuer Markt exclusively.
In contrast, this paper aims to give a more recent analysis of underpricing on the German market without distinguishing between different market segments. Additionally, a broad over-view and understanding of IPO underpricing, taking the long-run performance of IPOs into account, will be included.
As a result, this paper is structured as follows: The second section consists of a description of some of the important theoretical aspects that have influence on the price setting of an IPO. It will concentrate on business valuation as it is the basis for setting the price of an IPO. Furthermore, the most common price setting mechanisms shall be explained. Additionally, the special role of the lead underwriter in the IPO [...]

Change in Capital Gains Tax Rates and IPO Underpricing

3842821727 ISBN
Englisch SPRACHE
IPO Underpricing in Germany - Empirical Analysis of Influencing Variables.pdf


PC und Mac

Lesen Sie das eBook direkt nach dem Herunterladen über "Jetzt lesen" im Browser, oder mit der kostenlosen Lesesoftware Adobe Digital Editions.

iOS & Android

Für Tablets und Smartphones: Unsere Gratis tolino Lese-App

Andere eBook Reader

Laden Sie das eBook direkt auf dem Reader im Hugendubel.de-Shop herunter oder übertragen Sie es mit der kostenlosen Software Sony READER FOR PC/Mac oder Adobe Digital Editions.


Öffnen Sie das eBook nach der automatischen Synchronisation auf dem Reader oder übertragen Sie es manuell auf Ihr tolino Gerät mit der kostenlosen Software Adobe Digital Editions.

Aktuelle Bewertungen

Sofia Voigt

The Influence of Government Regulation on IPO … The IPO in China has been subject to the audit system, which imposes strict control over the pace of issuance of new stocks. The issuance of new stocks is relatively small, and there are also various restrictions on the issuance prices. High IPO underpricing rate and high turnover rate have always been unique to China’s new issue market. For this reason, this article begins with the causes

Matteo Müller

An Examination Factors Influencing Underpricing of IPOs in ... commonly used as well as variable that is rarely examined in the case of underpricing of financial and manufacturing industries in Indonesia Stock Exchange within 2011-2016. II. LITERATURE REVIEW Many researches have conducted the examination and analysis of factors influencing underpricing of IPOs.

Noel Schulze

Compra Variables Influencing the Severity of IPO Underpricing: An Empirical Analysis of the German Market. SPEDIZIONE GRATUITA su ordini idonei. Passa al contenuto principale . Iscriviti a Prime Ciao, Accedi Account e liste Accedi Account e liste Ordini Iscriviti a Prime Carrello. Tutte le categorie. VAI Variables Influencing the Severity of IPO …

Jason Lehmann

Books Agriculture, Hospitality, Travel & Tourism, Energy & Mining, Transportation, Service, Media & Communications and more from the wide range of products, online shopping at best prices. The issue of underpricing in Initial Public Offerings

Jessica Kohmann

IPO Underpricing and Ownership Structure literature review covering IPO underpricing and related factors influencing underpricing such as ownership structure, agency theory, family firms and socioemotional wealth, legislation and share class structure. Section 3 of this thesis addresses the methodology and presents how we conducted our quantitative study as well as discusses the variables we used in our regressions. Section 4