The Opening Price Performance of Initial Public Offerings of Common Stock: The Philippine Experience
Abstract
Common stock new issues are commonly called intial public offerings (IPOs) or the common stocks of companies that are listed in the stock exchange and issued to the public for the first time. In the US, Barry and Jennings [1993] provided empirical evidence that IPOs generate large short-run returns, on average, for investors fortunate enough to purchase stocks at the offer price. In the Philippines, the popularity IPOs has evolved due to the high returns obtained on listing day. In one study, Ybanez [1993] found that the 32 actively traded IPO's issued from 1989-1993 recorded 40 percent excess returns. He postulated that IPO's were generally underpriced.
Recommended Citation
Mangaran, Pablo F. Jr. and Ranit, Osman Luis C.
(1996)
"The Opening Price Performance of Initial Public Offerings of Common Stock: The Philippine Experience,"
DLSU Business & Economics Review: Vol. 7:
No.
2, Article 3.
DOI: https://doi.org/10.59588/2243-786X.1670
Available at:
https://animorepository.dlsu.edu.ph/ber/vol7/iss2/3
