Since 2014
Long-Run Underperformance And The Offering Price Clustering Phenomenon
The Review of Regional Studies
View Archive Info| Field | Value | |
| Title |
Long-Run Underperformance And The Offering Price Clustering Phenomenon
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| Creator |
Chiang, Kevin C.H.
Sankaran, Harikumar Zhou, Xiyu (Thomas) |
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| Subject |
public offerings
IPO offering price Underperformance |
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| Description |
The study proposes a new informational role for the offering price of an equity IPO. Offering prices are quoted either in whole prices (e.g., $2, $11, $19, etc) or fractional prices (e.g., $2.35, $11.15, $15.75, etc). Using Jay R. Ritter’s sample of 1,526 IPOs issued during the period 1975 to 1984, the study examines the relation between the presence of whole price clusters and long-run underperformance. The results indicate that fractional offering prices are associated with better long-run performance.
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| Publisher |
Clute Institute
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| Date |
2010-01-01
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://clutejournals.com/index.php/JBER/article/view/657
10.19030/jber.v8i1.657 |
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| Source |
Journal of Business & Economics Research (JBER); Vol. 8 No. 1 (2010)
2157-8893 1542-4448 10.19030/jber.v8i1 |
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| Language |
eng
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| Relation |
http://clutejournals.com/index.php/JBER/article/view/657/643
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