Why initial public offerings are underpriced: Evidence from Switzerland

摘要: Abstract The underpricing of initial public offerings is a well documented phenomenon for almost every equity market that has been examined. In Switzerland sample 42 stocks were issued in the between 1983 and 1989 35.8 percent average return offering price closing on first trading day found. excess returns from persist at least three years, however if purchase made day's then year are negative. paper discusses special institutional settings Swiss stock provides some explanations implying can be regarded as an equilibrium situation.