IPO waves and hot markets in the UK
Year: 2013
Type: book-chapter
Abstract: This paper examines the cyclical nature of IPO activity in the UK. The results indicate a lead-lag relationship between IPO initial returns and volume. IPO volume is sensitive to recent changes in market conditions. There is evidence of industry concentration in hot markets, and fi rms raise more equity during these periods. Overall, IPO waves in the UK share similar characteristics with those in the US. The findings are consistent with rational explanations of IPO waves. However, explanations based on investor sentiment and market timing cannot be ruled out, since there is a strong positive relationship between IPO volume and the market's price-to-book ratio.
Source: Edward Elgar Publishing eBooks
Authors: Shantanu Banerjee, Ufuk Güçbilmez, Grzegorz Pawlina
Institutions: Lancaster University, University of Glasgow
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1860697486