Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/22819
Title: The impact of investor sentiment on IPO underpricing
Authors: LIN ZHAN
Keywords: behavioral finance, sentiment, initial public offering, underpricing, investment banking, underwriters
Issue Date: 29-Oct-2010
Source: LIN ZHAN (2010-10-29). The impact of investor sentiment on IPO underpricing. ScholarBank@NUS Repository.
Abstract: We find that the abnormal trading by small investors is positively related to IPO underpricing. In addition to this firm specific investor sentiment, the market wide investor sentiment is also positively related with IPO underpricing significantly. Investor sentiment is positively related with IPO underpricing for both high and low investor sentiment. We show that for harder to arbitrage firms the positive relation between IPO underpricing and sentiment is more pronounced. We also find that the volatility of IPO underpricing is positively related to investor sentiment and infer that it is not only information asymmetry that matters, but also the degree of excess optimism or pessimism of investors in the market.
URI: http://scholarbank.nus.edu.sg/handle/10635/22819
Appears in Collections:Master's Theses (Open)

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
LinZhan.pdf501.34 kBAdobe PDF

OPEN

NoneView/Download

Page view(s)

421
checked on Dec 11, 2017

Download(s)

346
checked on Dec 11, 2017

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.