Comparable stocks, boundedly rational stock markets and IPO entry rates.
Where this comes from
- Record sourced from PubMed, PMID 23690924.
- Also identified by DOI 10.1371/journal.pone.0061474 and PMC identifier 3656873.
- Licence recorded as CC BY.
- The licence permits redistribution, so the abstract is shown in full and the full text is available from the publisher.
Abstract
In this study, we examine how initial public offerings (IPO) entry rates are affected when stock markets are boundedly rational and IPO firms infer information from their counterparts in the market. We hypothesize a curvilinear relationship between the number of comparable stocks and initial public offerings (IPO) entry rates into the NASDAQ Stock Exchange. Furthermore, we argue that trading volume and changes in stock returns partially mediates the relationship between the number of comparable stocks and IPO entry rates. The statistical evidence provides strong support for the hypotheses.
Medical subject headings
- Behavior
- Commerce
- Models, Economic