Universität zu Köln

Sun, Penghua (2015). Initial Public Offerings from the Perspectives of Issuers, Underwriters and Investors: A Review of Financial and Psychological Work. PhD thesis, Universität zu Köln.

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Abstract

This dissertation discusses initial public offering (IPO) and its two major phenomena: underpricing and underperformance. The dissertation reviews existent literature from both finance and psychology, from the perspectives of the three major parties in an IPO process: issuers, underwriters and investors. In each perspective, the context is unfolded according to either a logical decision making process or a sequential order of an IPO event. The results indicate that underpricing and underperformance should be perceived as joint results affected by all three parties via various parameters throughout the IPO process. Financial factors include asymmetric information and information accuracy; psychological factors include cognitive, affective and social factors. Financial and psychological factors impact underpricing and underperformance to different extents.