Valuation uncertainty, institutional involvement, and the underpricing of IPOs: The case of REITs

• 成果类型: Article
• 署名作者: Ling, DC; Ryngaert, M
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(96)00891-4
• 发表日期: 1997
• 页码: 433-456
• 关键词: IPO underpricing; REITS; asymmetric information

摘要

Unlike operating company IPOs, Real Estate Investment Trust (REIT) IPOs in the 1970s and 1980s were initially overpriced and subsequently underperformed other REIT securities in the 100 trading days after initial issuance. In contrast, equity REIT IPOs in the 1990s have been underpriced, on average by 3.6%, and have moderately outperformed seasoned equity REITs in the 100 trading days after issuance. We attribute the initial-day underpricing of recent REIT IPOs to greater valuation uncertainty and greater institutional involvement in the recent REIT IPO market. Both of these factors make these issues more susceptible to the 'winner's curse'.