Jump to ContentJump to Main Navigation
Show Summary Details
In This Section

Folia Oeconomica Stetinensia

The Journal of University of Szczecin

2 Issues per year

Open Access
Online
ISSN
1898-0198
See all formats and pricing
In This Section

The impact of the january effect on the IPO underpricing in Poland

Adrian Wołoszyn Ph.D
  • Corresponding author
  • Szczecin University Faculty of Economics and Management Mickiewicza 64, 71-101 Szczecin, Poland
  • Email:
/ Prof. Dariusz Zarzecki
  • Corresponding author
  • Szczecin University Faculty of Economics and Management Mickiewicza 64, 71-101 Szczecin, Poland
  • Email:
Published Online: 2014-03-25 | DOI: https://doi.org/10.2478/foli-2013-0010

Abstract

We examine the initial public offering (IPO) underpricing phenomenon in Poland using data from the Warsaw Stock Exchange (the main market). In the article we survey historical average IPO underpricing in Europe and outside Europe. We discuss the determinants of the IPO underpricing which is based on asymmetry of information, ownership and control, institutional explanations and behavioural explanations. We discuss the calendar effect and we examine the influence of the January effect on the IPO underpricing. On the Warsaw Stock Exchange in 2005-2011, the IPO underpricing was bigger for companies that debuted in January than for companies that debuted in other months. The empirical results are not statistically significant.

Keywords : IPO Underpricing; Stock Exchange; Warsaw Stock Exchange; January effect

References

  • Aminul, I., Ruhani, A. & Zamri, A. (2010). Underpricing of IPOs: The Case of Bangladesh.Global Economy and Finance Journal, Vol. 3, No. 1.Google Scholar

  • Brennan, M. & Franks, J. (1997). Underpricing, ownership and control in initial public offerings of equity securities in the UK. Journal of Financial Economics, 45.Google Scholar

  • Chambers, D. & Dimson, E. (2009). IPO Underpricing Over the Very Long Run. Journal of Finance, Vol. 64, No. 3.Web of ScienceGoogle Scholar

  • Gabryś, A. (2006). Efektywność rynku kapitałowego: poszukiwania teoretyczn i obserwacje empiryczne, www.aureamediocritas.pl (30.12.2012).Google Scholar

  • Gounopoulos, D., Nounis, C. & Stylianides, P. (2007). The Short and Long Term Peformance of Initial Public Offerings in the Cyprus Stock Exchange. Journal of Financial Decision Making, Vol. 4, No. 1.Google Scholar

  • Hozer, J. (1994). Statystyka część II wnioskowanie statystyczne skrypt dla studentów kierunków ekonomicznych. Szczecin: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego.Google Scholar

  • Ibbotson, R. & Ritter, J. (1995). Initial Public Offerings. In: R. Jarrow et al., Handbooks in OR & MS, Vol. 9.Google Scholar

  • Ljungqvist, A. (2004). IPO Underpricing. In: B.E. Eckbo, Handbook in Corporate Finance: Empirical Corporate Finance.Google Scholar

  • Loughran, T., Ritter, J. & Rydqvist, K. (2010). Initial Public Offerings: International Insights, http://bear.warrington.ufl.edu (21.12.2012). PwC (2012). IPO Watch Europe - 2010, www.pwc.com (30.11.2012).Google Scholar

  • Ritter, J. (1984). The “Hot Issue” Market of 1980. The Journal of Business, Vol. 57, No. 2.Google Scholar

  • Ritter, J. (2003). Differences between European and American IPO Markets. European Financial Management.Google Scholar

  • Rock, K. (1986). Why new issues are underpriced? Journal of Financial Economics, Vol. 15. Google Scholar

  • Securities and Exchange Comission (1963). Report of special study on security markets. Washington: U.S. Government Printing Office.Google Scholar

  • Szyszka, A. (2000). Efektywność rynku kapitałowego a anomalie rozkładu stóp zwrotu w czasie, http://atinvest.pl.Google Scholar

  • Ślepczuk, R. (2012). Anomalie rynku kapitałowego w świetle hipotezy efektywności rynku, www.skarbiec.biz (21.12.2012).Google Scholar

  • Tinic, S. (1988). Anatomy of Initial Public Offerings of Common Stock. Journal of Finance, 43.Google Scholar

  • Tyszka, T. (2003). Psychologia ekonomiczna. Gdańsk: GWP.Google Scholar

  • Welch, I. (1992). Sequential Sales Learning and Cascades. The Journal of Finance, Vol. 47, No. 2.Google Scholar

  • WSE (2012). Podstawowe Statystyki GPW, www.gpw.pl (30.12.2012). Google Scholar

About the article

Published Online: 2014-03-25

Published in Print: 2013-12-01


Citation Information: Folia Oeconomica Stetinensia, ISSN (Online) 1898-0198, ISSN (Print) 1730-4237, DOI: https://doi.org/10.2478/foli-2013-0010.

Export Citation

This content is open access.

Comments (0)

Please log in or register to comment.
Log in