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Price stabilization in the market for new issues

dc.contributor.authorHanley, Kathleen Weissen_US
dc.contributor.authorKumar, A. Arunen_US
dc.contributor.authorSeguin, Paul J.en_US
dc.date.accessioned2006-04-10T15:34:14Z
dc.date.available2006-04-10T15:34:14Z
dc.date.issued1993-10en_US
dc.identifier.citationHanley, Kathleen Weiss, Kumar, A. Arun, Seguin, Paul J. (1993/10)."Price stabilization in the market for new issues." Journal of Financial Economics 34(2): 177-197. <http://hdl.handle.net/2027.42/30539>en_US
dc.identifier.urihttp://www.sciencedirect.com/science/article/B6VBX-45DMXM2-13/2/d6b44f13213b5bf89198c2f1cca75ec6en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/30539
dc.description.abstractThis study examines price stabilization in new equity issues. Stabilizationtruncates the distribution of post-issue prices at a floor price, lowering the risk of adverse price moves and hence, in a competitive dealer market, reducing the bid-ask spread. Using 1.523 NASDAO-traded firm- commitment initial public offerings issued between 1982 and 1987, we find that spreads narrow when the market price is close to the offer price and stabilization is most likely. Moreover, significant negative returns are documented after the hypothesized termination of stabilizing activities, suggesting that stabilization, and its cessation, affect market prices.en_US
dc.format.extent2404745 bytes
dc.format.extent3118 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypetext/plain
dc.language.isoen_US
dc.publisherElsevieren_US
dc.titlePrice stabilization in the market for new issuesen_US
dc.typeArticleen_US
dc.rights.robotsIndexNoFollowen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelBusinessen_US
dc.description.peerreviewedPeer Revieweden_US
dc.contributor.affiliationumUniversity of Michigan, Ann Arbor, MI 48109-1234, USAen_US
dc.contributor.affiliationumUniversity of Michigan, Ann Arbor, MI 48109-1234, USAen_US
dc.contributor.affiliationumUniversity of Michigan, Ann Arbor, MI 48109-1234, USAen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/30539/1/0000172.pdfen_US
dc.identifier.doihttp://dx.doi.org/10.1016/0304-405X(93)90017-6en_US
dc.identifier.sourceJournal of Financial Economicsen_US
dc.owningcollnameInterdisciplinary and Peer-Reviewed


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