Group affiliation and the performance of IPOs in the Indian stock market
Group affiliation and the performance of IPOs in the Indian stock market
| dc.contributor.author | Marisetty, Vijaya B. | |
| dc.contributor.author | Subrahmanyam, Marti G. | |
| dc.date.accessioned | 2022-03-27T02:12:22Z | |
| dc.date.available | 2022-03-27T02:12:22Z | |
| dc.date.issued | 2010-02-01 | |
| dc.description.abstract | We document the effects of group affiliation on the initial performance of 2,713 initial public offerings (IPOs) in India under three regulatory regimes during the period 1990-2004. We distinguish between two competing hypotheses regarding group affiliation: the "certification" and the "tunneling" hypotheses. We lend support to the latter by showing that the underpricing of business group companies is higher than that of stand-alone companies. Furthermore, we find that the long-run performance of IPOs, in general, is negative. We also find that Indian investors over-react to IPOs and their over-reaction (proxied by the oversubscription rate) explains the extent of underpricing. © 2009 Elsevier B.V. All rights reserved. | |
| dc.identifier.citation | Journal of Financial Markets. v.13(1) | |
| dc.identifier.issn | 13864181 | |
| dc.identifier.uri | 10.1016/j.finmar.2009.09.001 | |
| dc.identifier.uri | https://www.sciencedirect.com/science/article/abs/pii/S1386418109000482 | |
| dc.identifier.uri | https://dspace.uohyd.ac.in/handle/1/4978 | |
| dc.subject | Business groups | |
| dc.subject | Certification | |
| dc.subject | Initial public offering (IPO) | |
| dc.subject | Tunneling | |
| dc.subject | Underpricing | |
| dc.title | Group affiliation and the performance of IPOs in the Indian stock market | |
| dc.type | Journal. Article | |
| dspace.entity.type |
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