Analysis into IPO underpricing and clustering in Hong Kong equity market
AbstractThis paper focuses on the time series properties of the level of underpricing of IPO shares and volume of initial selling in Hong Kong equity market. Strong autocorrelation among the level of underpricing has been identified. Evidence suggests that the initial selling volume plays an important role in the relationship. The links between underpricing and clustering of IPOs within different industries are weak, suggesting the reasons for underpricing are rather related to the market liquidity than industry specific risk characteristics.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 7876.
Date of creation: 20 Feb 2008
Date of revision:
Underpricing of IPO shares; Hong Kong equity market; the volume of initial selling; Market liquidity;
Other versions of this item:
- Yongyuan Qiao, 2007. "Analysis into IPO Underpricing and Clustering in Hong Kong Equity Market," CRIEFF Discussion Papers 0716, Centre for Research into Industry, Enterprise, Finance and the Firm.
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
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