Hot and Cold Market Cycle and IPO Performance: Theory and Evidence
作者： Kangmao Wang
DOI: 10.2139/SSRN.286181
关键词: Bond credit rating 、 Performance theory 、 Sample (statistics) 、 Interest rate 、 Economics 、 Proxy (statistics) 、 Actuarial science 、 Monetary economics 、 Initial public offering 、 Risk premium
摘要: The study develops a theoretical model, which describes the mechanism and causation of hot cold market their relationship to IPO underpricing. Empirical tests are conducted on sample 1,382 IPOs issued in United States from 1st January 1988 30th June 1999. empirical examine propositions derived namely underpricing behavior role risk premium factor as well risk-free interest rates markets. demonstrates that bond rating spread highly correlated hot/cold markets thus can be used proxy cycle. concludes both rate percentage underpriced issues significantly higher than market. It is also concluded
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