Record Details
When-issued trading in the Indian IPO market
ScholarsArchive at Oregon State University
| Field | Value |
|---|---|
| Title | When-issued trading in the Indian IPO market |
| Names |
Brooks, Raymond M.
(creator) Mathew, Prem G. (creator) Yang, J. Jimmy (creator) |
| Date Issued | 2014-06 (iso8601) |
| Note | This is an author's peer-reviewed final manuscript, as accepted by the publisher. The published article is copyrighted by Elsevier and can be found at: http://www.journals.elsevier.com/journal-of-financial-markets/. |
| Abstract | We examine the contribution of when-issued trading to price discovery and underpricing in the Indian IPO market. Besides the when-issued trading, there exists IPO grading, analyst recommendation, group affiliation, and the subscription rates in the bookbuilding process. We examine the impact of these activities and find three sequential factors that explain the IPO underpricing. Higher grades for an IPO lead to higher when-issued premiums, which in turn leads to higher subscription rates. Then, higher subscription rates lead to higher IPO underpricing. Overall, we find that the when-issued trading plays an important role in price discovery in the Indian IPO market. |
| Genre | Article |
| Topic | When-issued trading |
| Identifier | Brooks, R. M., Mathew, P. G., & Yang, J. J. (2014). When-issued trading in the Indian IPO market. Journal of Financial Markets, 19, 170-196. doi:10.1016/j.finmar.2013.10.001 |
