Please use this identifier to cite or link to this item:
The Influence of Growth Opportunities on the Pricing and Price Behavior of IPOs
Market-To-Book Ratio;Initial Return;Price Behavior;Growth Opportunity
|Issue Date:||2017-11-15 16:02:40 (UTC+8)|
For IPOs, growth opportunities are not only a determining factor in the offer price and the initial market price, but also on long-term price performance after the offerings. In this study, we find that the difference between IPO offer price and current fundamental value is a signal for growth opportunities, which in turn are positively correlated with the long-term price performance. However, growth opportunities appear to lead to excessive demand for IPOs to promote optimistic valuation after market, but the market correction of the overpricing is not conducive to long-term price performance. In addition, the evidence shows that IPOs are systematically overvalued at the offer price and the subsequent price relative to true value; therefore, employing the initial return as a measure of underpricing is problematic.
|Relation:||會計評論, 65, 45-81|
|Appears in Collections:||[會計評論] 期刊論文|
Files in This Item:
All items in 學術集成 are protected by copyright, with all rights reserved.