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Initial public offerings in Australia 1994 to 1999, recent evidence of underpricing and underperformance

journal contribution
posted on 2004-05-01, 00:00 authored by Bill Dimovski, R Brooks
This paper analyses whether financial and non financial characteristics of Australian initial public offerings (IPOs) can explain observed underpricing and long term underperformance over the period 1994 to 1999. A number of previous Australian studies have investigated initial day underpricing and longer term underperformance of IPOs and this study updates those papers. We find that initial day underpricing can in part be explained by market sentiment, forecast dividend per share yields, underwriter options and share options. Our longer term analysis supports the finding of previous studies in that IPOs on average, underperform the market in the first year following their listing.

History

Journal

Review of quantitative finance and accounting

Volume

22

Issue

3

Pagination

179 - 198

Publisher

Springer Netherlands

Location

Amsterdam, The Netherlands

ISSN

0924-865X

eISSN

1573-7179

Language

eng

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2004, Kluwer Academic Publishers

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