As cited by Dimovski and Brooks, underpricing refers to transfer of wealth from the issuing firm to the investors in the IPO. (Brooks, 2010) The issue of IPO being launched at a price substantially less than their market value on the first day of listing, is a global phenomenon now. The issue is now widely documented as academic researchers are performing a plethora of research work to evaluate the IPO underpricing. Even though the issue of IPO under pricing is internationally pervasive, however, in the recent years, researchers are getting more inclined in evaluating the IPO pricing in emerging ...
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