Investor Demand for Ipos and Aftermarket Performance: Evidence from the Hong Kong Stock Market

@article{Agarwal2008InvestorDF,
  title={Investor Demand for Ipos and Aftermarket Performance: Evidence from the Hong Kong Stock Market},
  author={Sumit Agarwal and Chunlin Liu and S. Ghon Rhee},
  journal={Capital Markets: Market Efficiency},
  year={2008}
}
In this study, we examine the relation between pre-offering demand and aftermarket performance of IPO firms in the Hong Kong stock market. We find that IPOs with high investor demand realize large positive initial returns but negative long-run excess returns, while IPOs with low investor demand realize negative initial returns but positive long-run excess returns. This result suggests that (1) pre-offering demand for IPOs is at least partly driven by investors' over- or underreactions to… 
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138 Citations
Highly Influential Citations
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Background Citations
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138 Citations

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