The Library
Underpricing, underperformance and overreaction in initial public offerings : evidence from investor attention using online searches
Tools
Tools
Tools
Varkman, Tomas and Kristoufek, Ladislav (2015) Underpricing, underperformance and overreaction in initial public offerings : evidence from investor attention using online searches. SpringerPlus, Volume 4 (Number 84). pp. 1-11. ISSN 2193-1801.
|
PDF
WRAP_VakrmanKristoufek2015.pdf - Published Version - Requires a PDF viewer. Download (885Kb) | Preview |
Official URL: http://dx.doi.org/10.1186/s40064-015-0839-4
Abstract
Online activity of Internet users has proven very useful in modeling various phenomena across a wide range of scientific disciplines. In our study, we focus on two stylized facts or puzzles surrounding the initial public offerings (IPOs) - the underpricing and the long-term underperformance. Using the Internet searches on Google, we proxy the investor attention before and during the day of the offering to show that the high attention IPOs have different characteristics than the low attention ones. After controlling for various effects, we show that investor attention still remains a strong component of the high initial returns (the underpricing), primarily for the high sentiment periods. Moreover, we demonstrate that the investor attention partially explains the overoptimistic market reaction and thus also a part of the long-term underperformance.
| Item Type: | Journal Article | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HA Statistics H Social Sciences > HG Finance |
||||||||
| Divisions: | Faculty of Social Sciences > Warwick Business School > Behavioural Science Faculty of Social Sciences > Warwick Business School |
||||||||
| Library of Congress Subject Headings (LCSH): | Going public (Securities), Electronic information resource searching | ||||||||
| Journal or Publication Title: | SpringerPlus | ||||||||
| Publisher: | Springer | ||||||||
| ISSN: | 2193-1801 | ||||||||
| Official Date: | 14 February 2015 | ||||||||
| Dates: |
|
||||||||
| Volume: | Volume 4 | ||||||||
| Number: | Number 84 | ||||||||
| Number of Pages: | 11 | ||||||||
| Page Range: | pp. 1-11 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Access rights to Published version: | Open Access (Creative Commons) | ||||||||
| Date of first compliant deposit: | 28 July 2016 | ||||||||
| Date of first compliant Open Access: | 28 July 2016 | ||||||||
| Funder: | Research Councils UK (RCUK), Seventh Framework Programme (European Commission) (FP7), Czech Science Foundation (CSF) | ||||||||
| Grant number: | EP/K039830/1 (RCUK), FP7-SSH-612955 (FinMaP) (FP7), P402/12/G097 βDYME (CSF) | ||||||||
| Adapted As: |
Request changes or add full text files to a record
Repository staff actions (login required)
 |
View Item |
Downloads
Downloads per month over past year
