Financial Management articles from March 1993

Financial Management archives from March 1993

The long-run performance of initial public offerings: the UK experience 1980-1988. (New Issues Markets Special Issue)
March 22, 1993... The empirical evidence accumulated during recent years for almost every capital market in the world, is unequivocal in its conclusion that initial public offerings (IPOs) provide significant abnormal returns on their first day of trading.(1)...

The aftermarket performance of initial public offerings in Latin America. (New Issues Markets Special Issue)
March 22, 1993... Numerous studies examining the performance of initial public offerings (IPOs) in the United States and other countries document the existence of positive average initial returns. However, recent evidence suggests that in the U.S., what appears to...

The opening price performance of initial public offerings of common stock.
March 22, 1993... Abundant empirical evidence indicates that initial public offerings (IPOs) of common stock generate large short-run returns, on average, for investors fortunate enough to purchase the stock at the offer price. Logue |16~, Ibbotson |11~, Ibbotson...

IPO underpricing and insurance against legal liability. (initial public offerings)
March 22, 1993... A potential explanation for the pervasive short-run underpricing of initial public offerings (IPOs) of equity relies on issuers' and underwriters' desire to avoid legal liabilities under federal securities laws for material misstatements in the...

IPO underpricing, insider selling and subsequent equity offerings: is underpricing a signal of quality? (includes appendix)
March 22, 1993... Recent papers (e.g., Allen and Faulhaber |1~, Welch |31~, and Grinblatt and Hwang |10~) model IPO underpricing as a mechanism for signalling firm quality. The basic idea behind these theories is that high quality firms are firms that have...

The structure of privatization plans.
March 22, 1993... In recent years, a vast transfer of state-owned assets to the private sector has occurred in many countries, irrespective of their level of development or the political affiliation of their government. Privatization is believed to improve...

The effect of the trading system on the underpricing of initial public offerings.
March 22, 1993... Two major trading systems in common stocks in the United States are (i) the exchange auction markets of the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX), and (ii) the negotiated dealer markets of the National Association...

Leveraged buyouts and insider nontrading.
March 22, 1993... Corporate managers are commonly assumed to be better informed (at least periodically) than outside investors about the intrinsic value of their firms. This assumption underlies models of managerial behavior (e.g., Miller and Rock |9~ and Myers...

The effects of announcements of bank lending agreements on the market values of U.S. banks.
March 22, 1993... In seeking to provide theoretical perspectives on the uniqueness of banks, a number of authors, including Campbell and Kracaw |5~, Diamond |9~, and Fama |11~, have focused on the role of banks in the information production process for...