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dc.contributor.authorBurhop, Carstenen_US
dc.date.accessioned2009-07-31en_US
dc.date.accessioned2010-05-14T12:02:07Z-
dc.date.available2010-05-14T12:02:07Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/32236-
dc.description.abstractIn this article, we evaluate underpricing of initial public offerings (IPOs) at the Berlin Stock Exchange between 1870 and 1896. In contrast to modern data, first day returns were extraordinary low and averaged less than five percent, even during the speculative period of the early 1870s. Moreover, standard underpricing theories based on asymmetric information, signalling mechanisms, or litigation risk cannot explain underpricing. In contrast to modern markets, the past market return had a negative influence on initial returns. Finally, we show that cash-flow relevant information contained in the corporate charter were readily factored in the first market price. Thus, the historical capital market differed from today's market, but seems to have been efficient.en_US
dc.language.isoengen_US
dc.publisherMax Planck Inst. for Research on Collective Goods Bonnen_US
dc.relation.ispartofseriesPreprints of the Max Planck Institute for Research on Collective Goods 2008,46en_US
dc.subject.jelN23en_US
dc.subject.jelN43en_US
dc.subject.jelG18en_US
dc.subject.ddc330en_US
dc.subject.keywordInitial public offeringsen_US
dc.subject.keywordFinancial historyen_US
dc.subject.keywordGermany pre-1913en_US
dc.subject.stwUnderpricingen_US
dc.subject.stwWertpapieremissionen_US
dc.subject.stwKapitalertragen_US
dc.subject.stwBörsenkursen_US
dc.subject.stwEffizienzmarkttheseen_US
dc.subject.stwDeutschland (bis 1945)en_US
dc.titleThe underpricing of initial public offerings in imperial Germany, 1870-1896en_US
dc.typeWorking Paperen_US
dc.identifier.ppn605763836en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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