Underpricing in the initial public offerings (IPOs) is a well documented phenomenon in the stock markets. In this paper T P Madhusoodanan and M Thiripalraju analyse the Indian IPO market for the short-term as well as long-term underpricing. They also examine the impact of the issue size on the extent of underpricing in these offerings and the performance of the merchant bankers in pricing these issues. The study indicates that, in general, the underpricing in the Indian IPOs in the shortrun was higher than the experiences of other countries. In the long-run too, Indian offerings have given high returns compared to negative returns reported from other countries. The study also reveals that none of the merchant bankers showed any better pricing capabilities.
This paper by Madhusoodanan applies the variance ratio tests under the null hypotheses of homoscedasticity as well as heteroscedasticity, to the Indian stock market. The tests are conducted at the aggregate level of market indices and disaggregate level of individual stocks. The results indicate that random walk hypothesis cannot be accepted in the Indian market. Both the market indices the author tested showed persistent behaviour, while most of the individual stocks also showed evidence on persistence. The variance ratios were significant under heteroscedasticity in most of the cases where it was significant under homoscedasticity assumption. This implies that heteroscedasticity does not play a major role in the Indian market.
In this article we consider a single‐server, bulk‐service queueing system in which the waiting room is of finite capacity. Arrival process is Poisson and all the arrivals taking place when the waiting room is full are lost. The service times are generally distributed independent random variables and the distribution is depending on the batch size being served. Using renewal theory, we derive the time‐dependent solution for the system‐size probabilities at arbitrary time points. Also we give expressions for the distribution of virtual waiting time in the queue at any time t.
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