Ashley Burrowes, Horst Feldmann, Mareile Feldmann and John MacDonald
Eckbo, Masulis, & Norli (2000) question previous examination of initial public offering (IPO) underperformance with the keen argument that the increase in the number of traded…
Abstract
Eckbo, Masulis, & Norli (2000) question previous examination of initial public offering (IPO) underperformance with the keen argument that the increase in the number of traded shares and the infusion of equity reduce two significant premia in the stock’s return, namely, liquidity risk and financial risk. The new market for high (expected) growth stock in Germany is examined for evidence of underpricing, underperformance, and liquidity improvements during the first two complete years of operation – 1998 and 1999. The initial trading period examines the offering day and also the first ten days of trading (for the investor who can not get allocation but enters the secondary market). The postissue performance study period is taken as the 5‐day period one‐year after the IPO. Using regression of four underpricing measures upon issuing firm characteristics deemed important from the extant literature, we seek to explain the degree of underpricing discovered. We find that substantial underpricing occurs and performance is high one year later, even adjusted for the German market return for the period or the firm‐specific sector performance for the same period. Trading dwindles for most stocks after the offering day. One year later, the trading of the stock is even lower. We do find that the more active the trading in the initial period, the greater the returns and trading one year after.
Details
Keywords
The aim of this paper is to explore community resilience during the short-term stages of recovery of Wittenberge in 1945, surrender in the final months of the Second World War and…
Abstract
Purpose
The aim of this paper is to explore community resilience during the short-term stages of recovery of Wittenberge in 1945, surrender in the final months of the Second World War and the commencement for the town of Soviet administration; with comments on longer-term contexts of continued resilience and recovery to the present day. The paper examines origins and current use of the term “resilience” for comparison with its realities that are identified.
Design/methodology/approach
Translated extracts of a chronology of events in Wittenberge during 1945 (Muchow) are the basis of an exploration of social impacts for a town in wartime of exhaustion, defeat, surrender, political change and impoverishment.
Findings
Current interpretations of social resilience frequently do not match its reality, largely due to overuse of the word. Resilience is conditioned by circumstances that cannot be assumed, sudden change here being part of the war experience, not a consequence.
Research limitations/implications
Whereas other research (e.g. Hewitt) has considered the social impact of mass bombing during the second World War, this paper takes the example of a single town in an exposed geographical situation which is described.
Originality/value
Whereas Second World War military history continues to be repeatedly re-examined, its social impacts are comparatively understated. This paper offers a rare example in English of the experience of a small town in Germany in 1945.