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THE UNDERPRICING OF IPOS OF FINANCIAL INSTITUTIONS
Author(s) -
Alli Kasim,
Yau Jot,
Yung Kenneth
Publication year - 1994
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1994.tb00361.x
Subject(s) - initial public offering , business , loan , sample (material) , financial system , finance , control (management) , economics , management , chemistry , chromatography
This paper examines the underpricing of IPOs of financial institutions over the period 1983 to 1987. Based on a sample of 185 banks and savings and loan associations (including S&L conversions) and a control sample of 1,361 industrial firms, results indicate that in general IPOs of financial institutions are significantly less underpriced than those of the non‐financial institutions. In particular, the IPOs of non‐S&L conversion financial institutions are less underpriced than the IPOs of non‐financial institutions.