Secondary price formation of ipos on the first trading day in the spanish market

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Auteur principal: Miguel A. Acedo
Format: Artículo científico
Langue:en
Publié: Universidad de Zaragoza 2014
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author Miguel A. Acedo
author_facet Miguel A. Acedo
contents Secondary price formation of ipos on the first trading day in the spanish market Miguel A. Acedo Francisco J. Ruiz-Cabestre Economía y Finanzas hot IPOs cold IPOs underpricing intraday or secondary return Key words: initial public offerings (IPOs) This study analyses the secondary price formation process of IPOs on the first trading day for a sample of 67 IPOs placed on the Spanish stock market. Our findings, after stating that the undervaluation does not go beyond the first trading day and that the intraday or secondary (open-toclose) return is significantly positive, show that intraday price variation, observed through open-to-close return variable, is not related to the offer and firm characteristics. Nevertheless, the influence of the primary market over the secondary price formation process on the first trading day is quite evident. In particular, we observe that the combination of cold and primary (offer-to-open) return variables allows us to partly explain the intraday price variation and that our results are fully consistent with the price support arguments for cold IPOs and, to a lesser degree, the casca - de effect for hot IPOs. 2014 artículo científico 1133-455X https://www.redalyc.org/articulo.oa?id=96932159003 en http://www.redalyc.org/revista.oa?id=969 Revista de Economía Aplicada application/pdf Universidad de Zaragoza Revista de Economía Aplicada (España) Num.65 Vol.XXII
format Artículo científico
id redalyc_96932159003
institution Redalyc
language en
publishDate 2014
publisher Universidad de Zaragoza
spellingShingle Secondary price formation of ipos on the first trading day in the spanish market
Miguel A. Acedo
Economía y Finanzas
hot IPOs
cold IPOs
underpricing
intraday or secondary return
Key words: initial public offerings (IPOs)
Secondary price formation of ipos on the first trading day in the spanish market Miguel A. Acedo Francisco J. Ruiz-Cabestre Economía y Finanzas hot IPOs cold IPOs underpricing intraday or secondary return Key words: initial public offerings (IPOs) This study analyses the secondary price formation process of IPOs on the first trading day for a sample of 67 IPOs placed on the Spanish stock market. Our findings, after stating that the undervaluation does not go beyond the first trading day and that the intraday or secondary (open-toclose) return is significantly positive, show that intraday price variation, observed through open-to-close return variable, is not related to the offer and firm characteristics. Nevertheless, the influence of the primary market over the secondary price formation process on the first trading day is quite evident. In particular, we observe that the combination of cold and primary (offer-to-open) return variables allows us to partly explain the intraday price variation and that our results are fully consistent with the price support arguments for cold IPOs and, to a lesser degree, the casca - de effect for hot IPOs. 2014 artículo científico 1133-455X https://www.redalyc.org/articulo.oa?id=96932159003 en http://www.redalyc.org/revista.oa?id=969 Revista de Economía Aplicada application/pdf Universidad de Zaragoza Revista de Economía Aplicada (España) Num.65 Vol.XXII
title Secondary price formation of ipos on the first trading day in the spanish market
topic Economía y Finanzas
hot IPOs
cold IPOs
underpricing
intraday or secondary return
Key words: initial public offerings (IPOs)
url https://www.redalyc.org/articulo.oa?id=96932159003