IPO Underpricing Analysis Using a Selection Model: Korean Evidence

Hyunsoo Joo and Hyunjin Lee

Global Economic Review, 2022, vol. 51, issue 1, 43-60

Abstract: Using IPO and external audit companies’ data in Korea from 2001 to 2020, we used an empirical test to understand which factors can explain underpricing in Korean stock markets. Our conclusions are as follows: first, selection bias is important in the IPO analysis and the sample selection model shows the best results. Second, we find that nonlinear relationships between explanatory variables and cumulative adjusted returns (CARs). Surprisingly, almost all of the variables included in the model were statistically significant. Finally, this clear relation persists upto 1 year after the IPO.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/1226508X.2021.2015420 (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:glecrv:v:51:y:2022:i:1:p:43-60

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RGER20

DOI: 10.1080/1226508X.2021.2015420

Access Statistics for this article

Global Economic Review is currently edited by Kap-Young Jeong and Taeyoon Sung

More articles in Global Economic Review from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().