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Initial Performance of Greek IPOs, Underwriter’s Reputation and Oversubscription

Author

Listed:
  • Dimitris Kenourgios

    (University of Athens)

  • Spyros Papathanasiou

    (Hellenic Open University)

  • Emmanouil Rafail Melas

    (London School of Economics)

Abstract

This paper provides additional international evidence on the IPOs by examining the initial performance and two main determinants of short-run underpricing of 169 IPOs listed on the Athens Stock Exchange (ASE) over the period 1997-2002. The initial performance of the IPOs is measured by calculated two formulas: the raw returns and the excess or adjusted returns of the first, fifth and twenty first day respectively. Furthermore, we use a proxy to rank the underwriters’ prestige along with the times of oversubscription, which are introduced as explanatory variables in our model. The results of the analysis provide evidence of significant underpricing. Furthermore, the cross sectional analysis on the determinants of the IPOs shows that both the underwriters’ prestige and the times of oversubscription significantly affect the underpricing level of the IPOs over the most important and “hot” period for the Greek emerging stock market since its establishment, in terms of growth rates, acceleration of the going public process and volatility of market and stock returns.

Suggested Citation

  • Dimitris Kenourgios & Spyros Papathanasiou & Emmanouil Rafail Melas, 2005. "Initial Performance of Greek IPOs, Underwriter’s Reputation and Oversubscription," Finance 0512023, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpfi:0512023
    Note: Type of Document - pdf; pages: 20
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0512/0512023.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    IPOs; underpricing; oversubscription; underwriters’ prestige; Athens Stock Exchange.;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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