%0 Journal Article %1 Marisetty2010 %A Marisetty, V. B. %A Subrahmanyam, M. G. %D 2010 %J Journal of Financial Markets %K 1990 2000 india %N 1 %P 196-223 %T Group affiliation and the performance of IPOs in the Indian stock market %V 13 %X We document the effects of group affiliation on the initial performance of 2,713 initial public offerings (IPOs) in India under three regulatory regimes during the period 1990-2004. We distinguish between two competing hypotheses regarding group affiliation: the "certification" and the "tunneling" hypotheses. We lend support to the latter by showing that the underpricing of business group companies is higher than that of stand-alone companies. Furthermore, we find that the long-run performance of IPOs, in general, is negative. We also find that Indian investors over-react to IPOs and their over-reaction (proxied by the oversubscription rate) explains the extent of underpricing. © 2009 Elsevier B.V. All rights reserved.

@article{Marisetty2010, abstract = {We document the effects of group affiliation on the initial performance of 2,713 initial public offerings (IPOs) in India under three regulatory regimes during the period 1990-2004. We distinguish between two competing hypotheses regarding group affiliation: the "certification" and the "tunneling" hypotheses. We lend support to the latter by showing that the underpricing of business group companies is higher than that of stand-alone companies. Furthermore, we find that the long-run performance of IPOs, in general, is negative. We also find that Indian investors over-react to IPOs and their over-reaction (proxied by the oversubscription rate) explains the extent of underpricing. © 2009 Elsevier B.V. All rights reserved.}, added-at = {2011-11-13T04:52:20.000+0100}, author = {Marisetty, V. B. and Subrahmanyam, M. G.}, biburl = {https://www.bibsonomy.org/bibtex/2b0a74d6888b65f3f5183a25f03111503/edwardyanquen}, interhash = {58c9cf34963cd9375e27ec9fa7b3579e}, intrahash = {b0a74d6888b65f3f5183a25f03111503}, journal = {Journal of Financial Markets}, keywords = {1990 2000 india}, number = 1, pages = {196-223}, timestamp = {2011-11-13T04:52:22.000+0100}, title = {Group affiliation and the performance of IPOs in the Indian stock market}, volume = 13, year = 2010 }