| Author: | Kunz, R. M. |
| Title: | Underpricing beim Going Public (!Public offering) (!Price performance) |
| Journal: | Unternehmung
1990 : VOL. 44:3, p. 202-221 |
| Index terms: | SHARE PRICES |
| Language: | ger |
| Abstract: | Some phenomena and problems of pricing behaviour in case of new issues put on the stock market are examined. Using a representative set of empirical data it is shown that underpricing is a common characteristic of new-issue stock price behaviour (supporting data from the USA, the Federal Republic of Germany, and Singapore are presented). Some reasons for this behaviour are listed and discussed (an institutional lag, the lack of necessary experience, speculative demand, risk-avoiding behaviour of banks, monopolistic power of banks etc.). The case of asymmetric information distribution between the bank and the issuer is described and analyzed. Some implications for Switzerland are summarized. |
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