IPO characteristics and underprincing in the Alternative Investment Market

Miguel Á. Acedo-Ramírez and Francisco J. Ruiz-Cabestre

Applied Economics Letters, 2017, vol. 24, issue 7, 485-489

Abstract: This study contributes to broadening knowledge concerning the underpricing of initial public offerings (IPOs) in second markets. In particular, we analyse the price formation process of IPOs on the first trading day for a sample of 567 IPOs placed in the London’s Alternative Investment Market. Our findings, after stating that underpricing is significantly positive, show that price variation, observed through the underpricing variable, is related to several offer-specific characteristics, such as subscription proportion, offering price and share adjustment. Underpricing is also related to several control variables (offering size, previous IPO number and previous market return).

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2016.1205713 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:24:y:2017:i:7:p:485-489

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2016.1205713

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().