Seminar: Initial Public Offerings
Seminar with Jin Roc Lv and Chander Shekhar
Sted: OsloMet, Pilestredet 35, rom Pi531 Dato og tid: torsdag 15. februar 2018 kl. 13.00 - 14.00
It is well documented in the finance literature that many sentiment driven investors leave stock markets during large sport events. We investigate the implications of this demand reduction on Initial Public Offerings (IPOs) during the world cup in football. We find that issuers during the world cup have lower underpricing, foreign investment, price revisions, post-listing price volatility, and eventually higher long-term returns. We are not able to detect any differences in issuer characteristics or pre-IPO filing prices between world cup and non-world cup IPOs. We conclude consistent with theoretical expectations that issuing equity in periods with less attention from sentiment driven investors improves on market efficiency.