Tuesday, May 30, 2006

Has IPO underpricing decreased over time?

Continuing with the “history and finance” theme that seems to have arisen of late, Chambers and Dimson examine IPOs from the London Stock Exchange from 1914 to the present. Interestingly, and counter to what standard financial theory might have predicted, they find no reduction in IPO underpricing in the more recent periods of increased regulation and decreased information asymmetries. In

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