The interrelationship between the US and Australian IPO markets

Abstract

Prior research on initial public offerings (IPOs) has concentrated on analysis of individual IPOs, or at least aggregated statistics thereof. This paper focuses on the aggregate market for IPOs and a cross-market study is undertaken in which the relationship between the Australian and US IPO markets is analyzed. The results reveal the relative dominance of the US market where the frequency of US IPOs leads the frequency of Australian IPOs. However, no linkage is observed in underpricing between the two markets. Show more