Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3233
Authors: 
Stolpe, Michael
Year of Publication: 
2004
Series/Report no.: 
Kiel Working Paper 1211
Abstract: 
This paper provides micro-econometric evidence on the relevance of non-market interaction for the timing of initial public offerings (IPOs) in the French and German primary equity markets. The surge of IPO volume in the late 1990s appears to be consistent with rational expectations, not with adaptive expectations derived from the performance of past IPOs. This finding tends to support the hypothesis that hot issue markets are endogenous and that they may generate large welfare gains by boosting the incentives for technological innovation in start-up firms, potentially creating a self-fulfilling prophecy. A variety of empirical approaches and policy implications are discussed.
Subjects: 
Initial public offerings
New technology-based firms
Information spillover
Hot issue market
Non-market interaction
JEL: 
G18
G12
G14
Document Type: 
Working Paper

Files in This Item:
File
Size
692.28 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.