| dc.contributor.author |
Boehme, Rodney |
|
| dc.contributor.author |
Colak, Gonul |
|
| dc.date.accessioned |
2012-06-15T18:59:24Z |
|
| dc.date.available |
2012-06-15T18:59:24Z |
|
| dc.date.issued |
2012-05 |
|
| dc.identifier.citation |
Boehme, R., and G. Colak. 2012. "Primary market characteristics and secondary market frictions of stocks".Journal of Financial Markets. 15 (2): 286-327. |
en_US |
| dc.identifier.issn |
1386-4181 |
|
| dc.identifier.uri |
http://hdl.handle.net/10057/5128 |
|
| dc.identifier.uri |
http://dx.doi.org/10.1016/j.finmar.2011.11.001 |
|
| dc.description |
Click on the DOI link below to access the article (may not be free). |
en_US |
| dc.description.abstract |
We analyze the primary market characteristics and the secondary market trading frictions of new stocks. IPOs issued in hot markets, with low offer price, low-reputation underwriters or no VC backing face higher liquidity frictions, higher information constraints, and worse short-sale constraints. Underpriced IPOs are more liquid and more recognizable, but they have higher idiosyncratic risk and higher short-sale constraints. Also, we find an interesting time trend in the evolution of the new stocks' trading frictions: the mean-reversion of an average IPO stock toward a typical seasoned stock takes more than a few years. We propose a quality-based explanation for these findings. |
en_US |
| dc.language.iso |
en_US |
en_US |
| dc.publisher |
Elsevier |
en_US |
| dc.relation.ispartofseries |
Journal of Financial Markets;2012:, v.15, no.2 |
|
| dc.subject |
Idiosyncratic risk |
en_US |
| dc.subject |
Information uncertainty |
en_US |
| dc.subject |
Initial public offerings |
en_US |
| dc.subject |
Liquidity |
en_US |
| dc.subject |
Market frictions |
en_US |
| dc.subject |
Short-sale constraints |
en_US |
| dc.title |
Primary market characteristics and secondary market frictions of stocks |
en_US |
| dc.type |
Article |
en_US |
| dc.description.version |
Peer reviewed |
|
| dc.rights.holder |
Copyright © 2012, Elsevier |
|