Con lo anterior se busca determinar el underpricing u overpricing de las empresas y su rendimiento en el corto y largo plazo.
Se procedio a determinar si la accion de la empresa analizada contaba con underpricing, overpricing, o no presentaba rendimiento.
There are also evidences showing that IPO underpricing
is used as a marketing tool.
In the primitive stage, we assert that underpricing
is more likely to happen.
The relationship between the proportion of the independent board members and underpricing
is negative as expected.
To gain an understanding why IPOs on average need to be underpriced, and alternative explanations to the underpricing
phenomenon it may be good to start with introducing the parties involved in the IPO.
Prior research has provided evidence in support of underpricing
which seems to exist in all countries.
positively correlates to analyst coverage after the IPO.
The best established theories of underpricing
are the asymmetric information based models and the behavioral (investor sentiment) models.
The following two sections apply a signaling perspective to develop theory and hypotheses that link board ownership, underpricing
, and liquidity.
Baron (1982) argues that underpricing
is explained by the asymmetric information between the issuer and the investment banker who is better informed than the issuer.
However, despite the importance of the relationship between corporate governance and underpricing
, to the best of author's knowledge the issue has not been empirically validated in case of Pakistan.