Pricing and Performance of Initial Public Offerings in the United States

by Ghosh,Arvin

• ISBN13: 9780765803269
• ISBN10: 0765803267
• Format: Hardcover
• Copyright: 2006-07-15
• Publisher: Routledge

Summary

In this timely volume on newly emerging financial markets and investment strategies, Arvin Ghosh explores the intriguing topic of initial public offerings (IPOs) of securities, among the most significant phenomena in the United State stock markets in recent years. Ghosh specifically examines the pricing and financial performance of IPOs in the United States during the period 1990-2001, also covering recent IPOs (2004). This work at last brings forth the true nature and consequences of the recent IPO phenomenon responsible for shaping the economy in the most significant way possible in the last preceding decade.

Table of Contents

Preface	xiii
1 Introduction	1	(20)
The IPOs during 1990-1995	2	(3)
IPOs in 1996-1999	5	(4)
The Internet Bubble	9	(6)
Meltdown after March 2000	15	(6)
2 The IPO Process	21	(12)
Preparation of the Prospectus	22	(1)
Role of the Underwriters	23	(1)
The Roadshow and Bookbuilding Process	24	(1)
IPO Pricing and First-Day Offering	25	(4)
The Aftermarket and Lockup Expiration	29	(4)
3 Mispricing and Flipping of the Internet IPOs	33	(10)
Data Sources and Methodology	34	(2)
Empirical Results	36	(4)
Concluding Remarks	40	(3)
4 Post-Issue Operating Performance of NASDAQ IPOs	43	(10)
Literature Review and Data Sources	43	(2)
Empirical Findings	45	(5)
Concluding Remarks	50	(3)
5 Pricing and Performance of the United States IPOs	53	(8)
Literature and Data Sources	53	(1)
Empirical Findings	54	(6)
Concluding Remarks	60	(1)
6 Pricing and Long-Run Performance of Venture-Backed and Nonventure-Backed IPOs	61	(10)
Literature Review and Data Sources	62	(1)
Empirical Findings	63	(5)
Concluding Remarks	68	(3)
7 Pricing and Operating Efficiency of the Venture-Backed and Nonventure-Backed Internet IPOs	71	(10)
Literature Review and Data Sources	72	(2)
Empirical Findings	74	(5)
Concluding Remarks	79	(2)
8 Gross Spread of the Underwriters and Offer Price of the IPOs, 1990-2000	81	(12)
Literature Review	82	(2)
Empirical Findings	84	(7)
Conclusion	91	(2)
9 Accuracy of Analysts' IPO Earnings Forecasts	93	(14)
Literature Review	94	(2)
Testing of Hypotheses	96	(2)
Data Source and Methodology	98	(2)
Empirical Findings	100	(5)
Conclusion	105	(2)
10 Summary and Conclusions	107	(14)
Summary of the Study	107	(6)
Whither IPOs?	113	(8)
Bibliography	121	(4)
Index	125