IPOS - Not So Much Money On The Table. The Cost Compensation Hypothesis

• Autorzy: Adam Zaremba , Karol Kamiński
• Języki publikacji: EN

Abstrakty

EN

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.(original abstract)

Słowa kluczowe

EN

Initial Public Offering (IPO); Stock exchange; Equity market; Underpricing

PL

Pierwsza oferta publiczna; Giełda; Rynek akcji; Niedoszacowanie cen akcji

• Czasopismo: Argumenta Oeconomica
• Rocznik: 2011
• Numer: nr 1 (26)
• Strony: 149--175

Twórcy

autor

Adam Zaremba

• Poznań University of Economics, Poland

autor

Karol Kamiński

• Poznań University of Economics, Poland

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