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| Author: | McGuinness, P. |
| Title: | An examination of the underpricing of initial public offerings in Hong Kong: 1980-90 |
| Journal: | Journal of Business Finance and Accounting
1992 : JAN, VOL. 19:2, p.165-186 |
| Index terms: | PRICING UNCERTAINTY PRICES STOCK MARKETS HONG KONG PRICE CUTTING |
| Language: | eng |
| Abstract: | Average initial returns of 17.6 per cent are revealed for the stocks scrutinised with three explanations of underpricing receiving support. First, support is offered for the Beatty and Ritter (1986) argument linking levels of ex-ante uncertainty, surrounding the post-issue price of the stock, positively to levels of underpricing. In addition, the incidence of secondary issues of stock, subsequent to an initial public offering (IPO), and the trend in market returns, prior to issue, are both positively and significantly related to Hong Kong IPO underpricing levels. |
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