IPO Underpricing Puzzle:
"When companies go public, the equity they sell in an initial public offering tends to be underpriced, resulting in a substantial price jump on the first day of trading. The underpricing discount in the United States averaged more than 20% during the 1990s, implying that firms left considerable amounts of money on the table." (Alexander, 2007).
The 8 publications relating to the above phenomena:
Alexander, L., 2007. Chapter 7 - IPO Underpricing. In Handbook of Empirical Corporate Finance. San Diego: Elsevier, pp. 375-422.
Chih-Hsiang, C., 2011. IPO underpricing: A social comparison perspective. International Review of Economics & Finance, 20(3), pp.367-375.
Costanzo, I.A.K., 2007. A Behavioral Explanation for the IPO Puzzles. Master Thesis CEMFI No. 0907.
Judith S, R., 1993. Underwriter price support and the IPO underpricing puzzle. Journal of Financial Economics, 34(2), pp.135-151.
Kennedy, D.B., Sivakumar, R. & Vetzal, K.R., 2006. The implications of IPO underpricing for the firm and insiders: Tests of asymmetric information theories. Journal of Empirical Finance, 13(1), pp.49-78.
Loffler, G., Panther, P.F. & Theissen, E., 2005. Who knows what when? The information content of pre-IPO market prices. Journal of Financial Intermediation, 14(4), pp.466-484.
Yung, C., Colak, G. & Wei Wang, 2008. Cycles in the IPO market. Journal of Financial Economics, 89(1), pp.192-208.
Zheng, S.X. & Li, M., 2008. Underpricing, ownership dispersion, and aftermarket liquidity of IPO stocks. Journal of Empirical Finance, 15(3), pp.436-454.4mb in 7zip format:
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