The short-run underpricing of initial public offerings in the Sri Lankan stock market

被引:10
作者
Samarakoon, Lalith P. [1 ]
机构
[1] Univ St Thomas, Opus Coll Business, 2115 Summit Ave, St Paul, MN 55105 USA
关键词
Underpricing; Uncertainty hypothesis; Investor sentiment; Privatization;
D O I
10.1016/j.mulfin.2010.07.003
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This study investigates underpricing of IPOs in Sri Lanka. On average, IPOs are underpriced by 34%. Small issues are more underpriced than large issues, and privatization issues are more underpriced than conventional issues. Investor sentiment is positively related with underpricing and affects small and large issues similarly. Small privatization issues are more underpriced than large privatization issues and partially explain the asymmetry in underpricing between small and large issues. However, even after controlling for investor sentiment, privatization, hot-market conditions, underwriter-size, and industry, small issues remain more underpriced than large issues. The results strongly support the uncertainty hypothesis for larger underpricing of small issues, and privatization issues. (C) 2010 Elsevier B.V. All rights reserved.
引用
收藏
页码:197 / 213
页数:17
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