Strategic behavior of insiders in initial underpricing and long-run underperformance

Yang, Baofeng; Zhou, Yingluo; Zhou, Zhong‐Guo

doi:10.1016/j.ememar.2022.100940

Cited by 8 publications

(3 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…3 Since we estimate initial underpricing using different time horizon over the first and second sub-periods, we may need to make some adjustments to make the adjusted initial return and average initial return more comparable. As a simple difference between the two returns only changes the regression intercept, Yang et al (2022) try to normalize the adjusted initial return to address that issue. They find that the overall results do not change meaningfully.…”

Section: Resultsmentioning

confidence: 99%

“…Therefore, it is not appropriate to estimate a ChiNext IPO's initial underpricing by the traditional way across all the IPOs over different periods. Like Yang et al (2022) who estimate initial underpricing by using the number of continuously suspended trading days, we propose another measure that uses the closing price for a ChiNext IPO on the first day when its trading is not suspended as an effective price to estimate the adjusted initial underpricing. Following that argument, we use the first day closing price to estimate initial underpricing for the ChiNext IPOs initiated during the first sub-period and the effective closing price to estimate adjusted initial underpricing for the ChiNext IPOs initiated during the second sub-period.…”

Section: Proper Initial Return Measuresmentioning

confidence: 99%

See 1 more Smart Citation

Does Information Disclosed in “Use of Proceeds” from Prospectuses Affect IPO Initial Underpricing?

Wenxiu

Zhou²

2022

Asia-Pac J of Fin Stud

View full text Add to dashboard Cite

We study the impact of intended use of proceeds disclosed in the section of "Use of Proceeds" in prospectuses on ChiNext IPOs' initial underpricing. After splitting the entire period into two non-overlapping sub-periods to control for regulatory changes and after controlling for the firm-level characteristics and market conditions, we find that the overall information disclosed from "Use of Proceeds" affects IPO initial underpricing significantly over the two sub-periods. Moreover, the intended use of IPO proceeds in several specific categories affects underpricing too. The proceeds raised for IPO firms' information platform and research and development over the second sub-period while the proceeds to promote marketing and sales and to expand existing products over the first sub-period are significantly and positively related to initial underpricing. The significance changes for the IPOs with the opportunity to change their use of proceeds after IPOs. We explore the causes and effects to explain our findings.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Proper Initial Return Measuresmentioning

confidence: 99%

Does Information Disclosed in “Use of Proceeds” from Prospectuses Affect IPO Initial Underpricing?

Wenxiu

Zhou²

2022

Asia-Pac J of Fin Stud

View full text Add to dashboard Cite

show abstract

“…Penelitian ini membuktikan pengaruh negative signifikan umur perusahaan terhadap underpricing. Hasil ini mendukung penelitian Engelen et al, 2020;Katti et al, 2022;Yang et al, 2022.Peran moderasi pandemic covid -19 pada hubungan reputasi underwriter, ROE dan umur perusahaan terhadap underpricing tidak dapat dibuktikan dalam penelitian ini.…”

Section: Pembahasanunclassified

Pengaruh Reputasi Underwriter, Return On Equity, dan Umur Perusahaan Syariah Terhadap Underpricing (Studi Pada Perusahaan Yang Teregistrasi di BEI Tahun 2018-2021)

Chrisnanda,

Raharja

2023

JIEI

View full text Add to dashboard Cite

This research aims to determine the influence of Underwriter reputation, Return On Equity, and Company Age on Underpricing (Study of Companies Registered on the BEI in 2018-2021)The samples used in this research are companies that were newly registered on the IDX in 2018-2021. Things that influence the level of Underpricing are proxied as ROE, Company Age, and Underwriter Reputation. Companies that registered on the stock exchange before and during Covid-19 were involved in moderating the underpricing. Company age has a significant negative effect on underpricing, the longer the company's age reduces underpricing. Return On Equity has no significant effect on underpricing. The higher ROE does not reduce the level of underpricing. Underwriter reputation does not have a significant effect on underpricing. The influence of Covid-19 does not moderate the relationship between company age, ROE and underwriter reputation with underpricing

show abstract

Information disclosure transparency and shareholder wealth: Based on textual analysis

Xie

2024

Finance Research Letters

View full text Add to dashboard Cite

Strategic behavior of insiders in initial underpricing and long-run underperformance

Cited by 8 publications

References 47 publications

Does Information Disclosed in “Use of Proceeds” from Prospectuses Affect IPO Initial Underpricing?

Does Information Disclosed in “Use of Proceeds” from Prospectuses Affect IPO Initial Underpricing?

Pengaruh Reputasi Underwriter, Return On Equity, dan Umur Perusahaan Syariah Terhadap Underpricing (Studi Pada Perusahaan Yang Teregistrasi di BEI Tahun 2018-2021)

Information disclosure transparency and shareholder wealth: Based on textual analysis

Contact Info

Product

Resources

About