The impacts of regulation regime changes on ChiNext IPOs: Effects of 2013 and 2020 reforms on initial return, fair value and overreaction

Deng, Qi; Dai, Lunge; Yang, Zhen; Zhou, Zhong‐Guo; Hussein, Monica; Chen, Ding-Yi; Swartz, Mick

doi:10.1016/j.irfa.2023.102794

Cited by 2 publications

(1 citation statement)

References 23 publications

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“…It is worth mentioning that the impact of IPO subscription demand on IPO return has been subject of intense research among academics and practitioners Low and Yong (2011), Alqahtani and Boulanouar (2017), Wang et al (2017) and Tsukioka et al (2018), Albada et al (2019), Ariyanto et al (2020), Yan and Wang (2021). Dierkes et al (2022) and Deng et al (2023).…”

Section: Introductionmentioning

confidence: 99%

Modeling the Subscription Ratio and IPO Returns Non-Linear Relationship: Evidence from the Tunisian Stock Market

Mellouli,

Ellouz

2023

IJEFI

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To capture the herd behavior of IPO investors, the relationship binding IPO underpricing and the subscription ratio is often assumed to represent a straight line in the relevant literature, due mainly to recurrent general linear modeling in the data analysis process. In Tunisia, however, and following the subscription result declaration, all IPOs are usually met with noticeable success owing to over subscription issues, resulting in persistent herd behavior. In this context, the present paper is deigned to highlight how Tunisian investors tend to mimic each other on setting out to make trading decisions. More particularly, we attempt to specify the non-linear relationship binding the subscription ratio and IPO returns within a quantile regression, highlighting the investors’ noticeable sensitivity to high subscription, thereby, easily inducing the spread of herd behavior and increasing IPO returns.

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