Price stabilization in the market for new issues
dc.contributor.author | Hanley, Kathleen Weiss | en_US |
dc.contributor.author | Kumar, A. Arun | en_US |
dc.contributor.author | Seguin, Paul J. | en_US |
dc.date.accessioned | 2006-04-10T15:34:14Z | |
dc.date.available | 2006-04-10T15:34:14Z | |
dc.date.issued | 1993-10 | en_US |
dc.identifier.citation | Hanley, 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.uri | http://www.sciencedirect.com/science/article/B6VBX-45DMXM2-13/2/d6b44f13213b5bf89198c2f1cca75ec6 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/30539 | |
dc.description.abstract | This 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.extent | 2404745 bytes | |
dc.format.extent | 3118 bytes | |
dc.format.mimetype | application/pdf | |
dc.format.mimetype | text/plain | |
dc.language.iso | en_US | |
dc.publisher | Elsevier | en_US |
dc.title | Price stabilization in the market for new issues | en_US |
dc.type | Article | en_US |
dc.rights.robots | IndexNoFollow | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.description.peerreviewed | Peer Reviewed | en_US |
dc.contributor.affiliationum | University of Michigan, Ann Arbor, MI 48109-1234, USA | en_US |
dc.contributor.affiliationum | University of Michigan, Ann Arbor, MI 48109-1234, USA | en_US |
dc.contributor.affiliationum | University of Michigan, Ann Arbor, MI 48109-1234, USA | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/30539/1/0000172.pdf | en_US |
dc.identifier.doi | http://dx.doi.org/10.1016/0304-405X(93)90017-6 | en_US |
dc.identifier.source | Journal of Financial Economics | en_US |
dc.owningcollname | Interdisciplinary and Peer-Reviewed |
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