Hot Markets, Investor Sentiment, and IPO Pricing

By Alexander P. Ljungqvist, Vikram K. Nanda, Rajdeep Singh. 2003

617 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/b80a697564c531779af1e22a13eff9c8f3eb2301

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Citations in the corpus

Does Sentiment Drive the Retail Demand for IPOs? (2009, background): “Ritter (2003) and Jenkinson, Morrison, and Wilhelm (2006) provide details on similarities of and differences between U.S. and European IPO markets. controlling for a range of IPO offer and market characteristics.”
Cycles in the IPO market (2008, background): “For example, Rajan and Servaes (2003), Ljungqvist, Nanda, and Singh (2006), and Bachmann (2005) tie together underpricing, hot issue markets, and long-run underperformance in theoretical 5See for example, Hubbard (1998) and Bernanke, Gertler, and Gilchrist (1996).”
Overvalued Equity and Financing Decisions (2012, neutral): “The inefficient markets approach to corporate finance predicts that firms will design financing strategies to exploit investor and market errors (e.g., Stein (1996), Ljungqvist, Nanda, and Singh (2006), and the survey of Baker, Ruback, and Wurgler (2007)).”
Strategic IPO Underpricing, Information Momentum, and Lockup Expiration Selling (2002, positive): “Ljungqvist et al. (2002) present a model in which underpriced shares are sold to institutional investors who then gradually sell them to sentiment investors in hot issue markets.”
Do Investors Overweight Personal Experience? Evidence from IPO Subscriptions (2008, methodology): “Recent IPO models (Derrien, 2005; Ljungqvist et al., 2006) suggest that issuers and investment banks’ regular customers benefit from the involvement of sentiment investors.”
Global trends in IPO methods: Book building versus auctions with endogenous entry (2005, result): “Ljungqvist et al. (2006) get a similar result in a model through irrationally exuberant sentiment investors.”
Investor Sentiment and Asset Valuation (2005, background): “Ljungqvist, Nanda, and Singh (2002) suggest firms time their issues during ‘‘hot markets,’’ which are times of excessive optimism.”
In Search of Attention (2009, positive): “Consistent with Ritter and Welch s conjecture, the set of IPOs with low SV I_Change during the week prior to the IPO have rst-day returns of 10.48% on average while the set of IPOs with high SV I_Change have much higher rstday return of 17.25% on average.”
Investor sentiment effect in stock markets: Stock characteristics or country-specific factors? (2013, background): “, 1991; Swaminathan, 1996; Neal and Wheatley, 1998 and Doukas and Milonas, 2004), option implied volatility (Whaley, 2000), the number of IPOs and average first-day IPO returns (Ljungqvist et al., 2006), turnover or trading volume (Jones, 2002; Sheinkman and Xiong, 2003 and Baker and Stein, 2004), t”
Peer performance and stock market entry (2012, neutral): “Derrien (2005) and Ljungqvist, Nanda, and Singh (2006) model the impact of investor sentiment on IPO demand and pricing patterns.”
Investor Demand for Ipos and Aftermarket Performance: Evidence from the Hong Kong Stock Market (2008, positive): “Finally, Aggarwal and Rivoli (1990) argue that IPO underpricing may be positively related to long-run underperformance as a result of investor irrationality (see also Rajan and Servaes, 2002; Ljungqvist et al., 2007).”