Financial Management articles from September 2004

Financial Management archives from September 2004

Why has IPO underpricing changed over time?
September 22, 2004... In the 1980s, the average first-day return on initial public offerings (IPOs) was 7%. The average first-day return doubled to almost 15% during 1990-1998, before jumping to 65% during the internet bubble years of 1999-2000 and then reverting to...

US-bound IPOs: issue costs and selective entry.
September 22, 2004... We examine 245 international firms making initial public offerings (IPOs) in the United States between 1991 and 1999, and compare their underwriting fees and indirect costs of underpricing to the IPOs of domestic US issuers. Our results...

Risk or mispricing? From the mouths of professionals.
September 22, 2004... This article uses two experiments to assess whether security characteristics are associated with returns because investors believe they affect risk, or because investors believe they reflect mispricing. We examine how beta, market-to-book...

Wealth gains from tracking stocks: long-run performance and ex-date returns.
September 22, 2004... We examine the long-run performance of the tracking stocks, the parent stocks, and the combined companies following the issue of tracking stock, as well as the performance of the firms prior to the tracking stock issue. Our results indicate...

Monitoring, financial distress, and the structure of commercial lending syndicates.
September 22, 2004... We examine the size and composition of commercial lending syndicates. Syndicates are smaller and more concentrated when there is little information about the borrower, when credit risk is relatively high, and when a loan is secured. This...