FACTORS AND THE PRICING OF IPO AFTERMARKET RETURNS
Allen D. Morton
(Associate Professor, Finance Department, Ancell School of Business, Western Connecticut State University, Danbury, Ct. 06810.)
298
Abstract
This paper uses a multifactor logit model to analyze the aftermarket performance of randomly chosen IPO's in hot and cold markets. The theories of risk aversion and utility maximization, in conjunction with the paper's empirical results, suggest that cold market investors are more risk averse than are hot market investors.
Citation
Morton, A.D. (1998), "FACTORS AND THE PRICING OF IPO AFTERMARKET RETURNS", Studies in Economics and Finance, Vol. 19 No. 1/2, pp. 77-102. https://doi.org/10.1108/eb028748
Publisher
:MCB UP Ltd
Copyright © 1998, MCB UP Limited