[2015년 제 2차] THE EFFICIENCY OF IPO STOCKS
작성자 : 관리자
조회수 : 949
게시일 :
2015-06-03
I test whether there is a difference in the level of efficiency between IPO stocks and a matched sample of seasoned stocks. My findings show that IPO stocks are less efficient than seasoned stocks during my testing period of 175 trading days. I attribute the lower level of efficiency for my testing period to the higher amount of information asymmetry inherent in IPO stocks. I contend that the presence (or quality) of financial intermediaries is related to the level of information asymmetry for IPO stocks. Consistent with this argument, I find that IPOs with prestigious underwriters, with venture capital backing, or with large managing syndicates have a higher level of efficiency than IPOs with less prestigious underwriters, no venture capital backing, or small managing syndicates. Finally, I show that stocks with higher levels of efficiency have higher long-run performance, consistent with efficient stock prices being an important input for firms to make sound financing and investment decisions.