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  • Journal of Financial and Quantitative Analysis, Volume 37, Issue 4
  • December 2002, pp. 595-616

Partial Adjustment to Public Information and IPO Underpricing

  • Daniel J. Bradley (a1) and Bradford D. Jordan (a2)
  • DOI: http://dx.doi.org/10.2307/3595013
  • Published online: 01 April 2009
Abstract
Abstract

We examine the extent to which offer prices reflect public information for 3,325 IPOs over the period 1990–1999. We focus primarily on four variables: share overhang, file range amendments, venture capital backing, and previous issue underpricing. We show that 35%–50% of the variation in IPO underpricing can be predicted using public information known before the offer date and therefore conclude that IPO offer prices underadjust to widely available public information to a much greater extent than previously documented.

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This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

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Journal of Financial and Quantitative Analysis
  • ISSN: 0022-1090
  • EISSN: 1756-6916
  • URL: /core/journals/journal-of-financial-and-quantitative-analysis
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