Does Initial Public Offering have influence on liquidity and trading activity?

Autor: Ruiz Cabestre, Francisco JavierAcedo Ramírez, Miguel Angel; Santamaría Aquilué, Rafael; 

Tipo de documento: Capítulo de libro

Libro: University, Society and Global Markets

Año: 2008  Páginas: 84-98

Texto completo open access 

Resumen: This study examines the relationship between the characteristics that define initial public offerings (IPOs) and the liquidity and trading activity of stocks outstanding after the execution of these operations. We argue that higher relative size, retail composition and underpricing of the offerings higher post-listing liquidity and trading activity. Using a sample of Spanish IPOs, the results reveal that the liquidity and the trading activity can be explained by the characteristics that define IPOs. In addition these results remain robust after excluding the market effect.