Do IPOs in Cold Markets Provide Better Returns
Published: 2017
Author(s) Name: Kedar Mukund Phadke, Manoj Subhash Kamat |
Author(s) Affiliation: Professor, National Institute of Construction Management & Research (NICMAR), Ponda, Goa, India.
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Abstract
Significant listing day returns for IPOs is a phenomenon
that is observed when companies go public. Using
a larger timeframe (1999-2014), we attempt to
determine the long-run performance of underpriced
IPOs issued in an emerging economy such as India
during the hot and cold IPO markets for 36-months.
The results indicate that IPOs perform significantly
better when issued during cold markets. We find that
the distribution of returns is the same across cold and
hot markets at specific periods during the 36-month
period of study.
Keywords: IPO, Cold vs Hot, Returns, Emerging Economy India, BHAR, Event Study
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