Decimalization, IPO Aftermath and Liquidity

• المؤلفون الرئيسيون: Charoenwong, C., DING, David K., Thong, Tiong Yang
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2005
• الموضوعات: Decimalization; IPO; Underpricing; Liquidity; Aftermath; Finance and Financial Management; Portfolio and Security Analysis
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/721
• المؤسسة: Singapore Management University

This paper investigates the effect of decimalization on the aftermarket trading of NYSE-listed IPOs. We find that after decimalization, the relation between spreads and underpricing becomes negative, which suggests that the benefits from the increased price competition accrue more to hot IPOs. The d...