Initial Performance of Greek IPOs, Underwriter's Reputation and Oversubscription

Managerial Finance, 33 (5), 332-343, 2007

26 Pages Posted: 14 Nov 2014

See all articles by Dimitris Kenourgios

Dimitris Kenourgios

National and Kapodistrian University of Athens - Department of Economics

Spyros Papathanasiou

National and Kapodistrian University of Athens

Emmanouil Rafail D. Melas

London School of Economics & Political Science (LSE)

Multiple version iconThere are 2 versions of this paper

Date Written: 2007

Abstract

This paper provides additional international evidence on the IPOs by examining the initial performance and two main determinants of short-run underpricing of 169 IPOs listed on the Athens Stock Exchange (ASE) over the period 1997-2002. The initial performance of the IPOs is measured by calculated two formulas: the raw returns and the excess or adjusted returns of the first, fifth and twenty first day respectively.

Furthermore, we use a proxy to rank the underwriters' prestige along with the times of oversubscription, which are introduced as explanatory variables in our model. The results of the analysis provide evidence of significant underpricing. Furthermore, the cross sectional analysis on the determinants of the IPOs shows that both the underwriters' prestige and the times of oversubscription significantly affect the underpricing level of the IPOs over the most important and hot period for the Greek emerging stock market since its establishment, in terms of growth rates, acceleration of the going public process and volatility of market and stock returns.

Keywords: IPOs, underpricing, oversubscription, underwriters' prestige, Athens Stock Exchange

JEL Classification: G24, G32

Suggested Citation

Kenourgios, Dimitris and Papathanasiou, Spyros and Melas, Emmanouil Rafail D., Initial Performance of Greek IPOs, Underwriter's Reputation and Oversubscription (2007). Managerial Finance, 33 (5), 332-343, 2007, Available at SSRN: https://ssrn.com/abstract=2523381

Dimitris Kenourgios

National and Kapodistrian University of Athens - Department of Economics ( email )

1, Sofokleous Str
Office 521
Athens, 10559
Greece
+30 210 3689449 (Phone)

Spyros Papathanasiou (Contact Author)

National and Kapodistrian University of Athens ( email )

1, Sofokleous Str.
Athens, 10559
Greece

Emmanouil Rafail D. Melas

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
47
Abstract Views
501
PlumX Metrics