Underpricing and aftermarket performance of American depositary receipts (ADR) IPOs

Ejara, Demissew Diro; Ghosh, Chinmoy

doi:10.1016/j.jbankfin.2004.05.006

Cited by 40 publications

(5 citation statements)

References 42 publications

(78 reference statements)

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“…Prior literature reported the positive relationship between underpricing and firm size. (Sahoo and Rajib 2010;Diro Ejara and Ghosh 2004;.This evidence supports the ex-ante uncertainty hypothesis that the availability of historical information of firms leads to a lower probability of IPO mispricing. In general, the prestige and expertise of underwriters affect the pricing of IPOs.…”

Section: Results Of the Basic Model With All The Z Variablessupporting

confidence: 76%

Valuing local and dual-class IPOs in the Alternative Investment Market

Wahid

Mumtaz

Mantell

2020

Estudios de Economía

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Initial Public Offerings are, by definition, not seasoned securities. They have not been subjected to valuation by the community of investors. It is often difficult or impossible to forecast their future cash flows because most do not have a long history of publicly disclosed financial information. Consequently, valuing IPOs in any market is more difficult than valuing seasoned equities. In this paper, we address the valuation of IPOs in the Alternative Investment Market, (hereafter the AIM.) The purpose of this study is to determine the observable factors that affect valuation in the AIM. We apply OLS, LASSO regression, and Extreme Bounds Analysis (EBA) techniques on historical accounting data to test our theory of valuation. The statistical sample consists of 2,185 IPOs issued on the AIM between 1995 and 2020. Our findings suggest that the market valuation of IPOs in the AIM is systematically related to a multiplicity of factors. These include earnings per share (EPS) in the after-market, operating cash follow per share, and the percentage of shares issued to the public. The findings of the study have a practical value for investors who are interested in buying IPOs in the AIM.

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Section: Results Of the Basic Model With All The Z Variablessupporting

confidence: 76%

Valuing local and dual-class IPOs in the Alternative Investment Market

Wahid

Mumtaz

Mantell

2020

Estudios de Economía

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“…Cluster 5: privatisation and cross listing Explore the methods of privatisation and their effect on the stock market's liquidity (Bortolotti et al, 2007;Diro Ejara and Ghosh, 2004;Megginson, 2010) (1) How the private control benefits of state-owned firms relate to cross listing? (2) What does majority shareholders expect in return while forgoing private control of benefits of control?…”

Section: Cluster Current Research Future Research Agendamentioning

confidence: 99%

“…(2007) discuss that SIPs have been a significant source of liquidity in developed economies. Diro Ejara and Ghosh (2004) compare the ADRs’ initial public offerings (IPOs) with a sample of US firms. They propound that privatisation IPOs are less underpriced than non-privatisation IPOs.…”

Section: Network Analysismentioning

confidence: 99%

Mapping the intellectual structure and demystifying the research trend of cross listing: a bibliometric analysis

Batra

Saini

Yadav

et al. 2022

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PurposeThis study aims to conduct a comprehensive bibliometric analysis to determine the intellectual structure of cross-listing studies and suggests a road map for future research in this field.Design/methodology/approachA step-by-step procedure was carried out. With the help of a defined search string, 580 articles from reputed journals have been retrieved from the Scopus database. Bibliographic coupling and keyword analysis were executed to understand the current research scenario and future research directions in this research field. In addition, R Studio combined with VOSviewer was employed to analyse and visualise the data.FindingsThe results provide a deeper insight into publication trends, most prolific countries, institutions and journals in the area of cross-listing. The highest collaboration was observed between the authors in the USA and Canada. Moreover, the results contradict Bradford's and Lotka's laws. A thorough review of the literature identifies five clusters in this domain. Finally, keyword analysis offers a future road map in cross-listing research.Originality/valueResearchers have shown greater interest in cross-listing topics over the past decades. Even though the research volume on this subject is increasing, the current retrospective is still insufficient. To the best of the authors' knowledge, this study is the first to provide valuable insights to practitioners, academicians, and prospective researchers about the intellectual structure of cross-listing and also offers future avenues in this research field through bibliometric analysis.

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“…Demers and Lewellen (2003) examined the impact of IPO underpricing on the website traffic of internet companies and found that underpricing is positively associated with post-issue growth in web-traffic for the IPO companies. In their comparative analysis of the pricing and aftermarket performance of IPOs by ADRs and a matching sample of US firms, Ejara and Ghosh (2004) found that ADR IPOs are significantly less underpriced than comparable US IPOs. IPOs from developed countries are more underpriced and privatisation of IPOs are less underpriced than nonprivatisations.…”

Section: Listing Day Underpricingmentioning

confidence: 99%

Pricing and performance of IPOs: Evidence from Indian stock market

Hawaldar

Kumar

Mallikarjunappa

2018

Cogent Economics & Finance

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This study examines listing day performance of IPOs, book-built and fixed-price IPOs, post-listing aftermarket performance of IPOs, book-built and fixed-price IPOs in the Indian stock market. We examine pricing as well as long run performance of 464 (365 book-built IPOs and 99 fixed-price IPOs) Indian IPOs that went public between 2001 and 2011. The study covers 15 years from the financial year 2001 to 2015. Analysis of the results reveals that compared to fixed-price IPOs, book-built IPOs are underpriced by lesser magnitude. Moreover, book-built IPOs are associated with negative cumulative average abnormal returns (CAARs) up to five years and beyond, the negative CAARs associated with fixed-price IPOs turn positive after one and one-half year and continue to be positive thereafter.

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Underpricing and aftermarket performance of American depositary receipts (ADR) IPOs

Cited by 40 publications

References 42 publications

Valuing local and dual-class IPOs in the Alternative Investment Market

Valuing local and dual-class IPOs in the Alternative Investment Market

Mapping the intellectual structure and demystifying the research trend of cross listing: a bibliometric analysis

Pricing and performance of IPOs: Evidence from Indian stock market

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