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Associations between management forecast accuracy and pricing of IPOs in Athens Stock Exchange

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posted on 2023-06-08, 15:38 authored by Dimitrios Gounopoulos
This study examines the earnings forecast accuracy of newly listed companies on the Athens Stock Exchange and further investigates the relationship between earnings forecast and pricing of IPOs. It uses a unique dataset of 208 IPOs, which were floated during the period of January 1994 to December 2001 in the Athens Stock Exchange. The results suggest that investors are able to anticipate forecast errors at the time of listing. Pricing of IPOs indicate that firms with negative earnings forecast (pessimistic) are associated with low level of underpricing while optimistic management earning forecast can be a signal for high initial returns. Three variables - age of the IPOs, ownership by insiders and industry classification significantly contribute towards accuracy of earnings forecast.

History

Publication status

  • Published

File Version

  • Published version

Journal

Multinational Finance Journal

Publisher

Multinational Finance Society

Issue

3/4

Volume

15

Page range

235-272

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2013-09-10

First Open Access (FOA) Date

2013-09-10

First Compliant Deposit (FCD) Date

2013-09-10

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