Gounopoulos, Dimitrios (2011) Associations between management forecast accuracy and pricing of IPOs in Athens Stock Exchange. Multinational Finance Journal, 15 (3/4). pp. 235-272.

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Abstract

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.

Item Type:	Article
Schools and Departments:	School of Business, Management and Economics > Business and Management
Subjects:	H Social Sciences > HG Finance
Related URLs:	Publisher
Depositing User:	Catrina Hey
Date Deposited:	10 Sep 2013 09:21
Last Modified:	07 Mar 2017 10:19
URI:	http://srodev.sussex.ac.uk/id/eprint/46082

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