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dc.contributor.authorManigart, Sophie
dc.contributor.authorDe Maeseneire, Wouter
dc.date.accessioned2017-12-02T14:16:27Z
dc.date.available2017-12-02T14:16:27Z
dc.date.issued2003
dc.identifier.urihttp://hdl.handle.net/20.500.12127/973
dc.description.abstractThis paper investigates initial returns of Easdaq and EuroNM IPOs and explains part of these returns. Average first day return of 300 IPOs introduced before October 1, 1999, is 36.01 %. The most significant explanatory variable is the mean return of previous IPOs, indicating that high initial returns are caused by too high first trading prices due to investor overreaction and positive market sentiment. Riskier IPOs present substantially higher initial returns. Venture capitalists are not able to significantly reduce initial returns, nor does size of the IPO influence initial returns. Our results indicate that high initial returns are caused by underpricing as well as overvaluation. Keywords: underpricing, investor sentiment, IPOs, initial returns
dc.language.isoen
dc.publisherVlerick Business School
dc.subjectCorporate Finance
dc.titleInitial returns: underpricing or overevaluation? Evidence from easdaq and euronm
dc.source.issue11
dc.source.numberofpages48
vlerick.knowledgedomainAccounting & Finance
vlerick.supervisor
vlerick.typecommWorking paper
vlerick.vlerickdepartmentA&F
dc.relation.urlhttp://public.vlerick.com/Publications/f2598e99-69a9-e011-8a89-005056a635ed.pdf
dc.identifier.vperid40574
dc.identifier.vperid35884
dc.identifier.vpubid1023


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