Investigación

ISI

calendar_month Publicación: 24/12/2009

Do IPOs affect the prices of other stocks? Evidence from emerging markets

We show that the introduction of a large asset permanently affects the prices of existing assets in a market. Using data from 254 initial public offerings (IPOs) in 22 emerging markets, we find that portfolios that covary highly with the IPO experience a decline in prices relative to other portfolios during the month of the issue. The effects are stronger when the IPO is issued in a market that is less integrated internationally and when the IPO is bigger. This evidence is consistent with the idea that shocks to asset supply have a significant effect on asset prices.

Fuente: Review of Financial Studies

Número: 22, Volumen: 4, Páginas: 1505-1544   

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