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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/27852
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| Title: | Group Affiliation and the Performance of Initial Public Offerings in the
Indian Stock Market |
| Authors: | Subrahmanyam, Marti
Marisetty, Vijaya |
| Issue Date: | 2-Feb-2009 |
| Series/Report no.: | FIN-08-010 |
| 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. |
| URI: | http://hdl.handle.net/2451/27852 |
| Appears in Collections: | Finance Working Papers
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