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The impact of the january effect on the IPO underpricing in Poland

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  • Wołoszyn Adrian

    (Szczecin University Faculty of Economics and Management Mickiewicza 64, 71-101 Szczecin, Poland)

  • Zarzecki Dariusz

    (Szczecin University Faculty of Economics and Management Mickiewicza 64, 71-101 Szczecin, Poland)

Abstract

We examine the initial public offering (IPO) underpricing phenomenon in Poland using data from the Warsaw Stock Exchange (the main market). In the article we survey historical average IPO underpricing in Europe and outside Europe. We discuss the determinants of the IPO underpricing which is based on asymmetry of information, ownership and control, institutional explanations and behavioural explanations. We discuss the calendar effect and we examine the influence of the January effect on the IPO underpricing. On the Warsaw Stock Exchange in 2005-2011, the IPO underpricing was bigger for companies that debuted in January than for companies that debuted in other months. The empirical results are not statistically significant.

Suggested Citation

  • Wołoszyn Adrian & Zarzecki Dariusz, 2013. "The impact of the january effect on the IPO underpricing in Poland," Folia Oeconomica Stetinensia, Sciendo, vol. 13(1), pages 121-135, December.
    • Handle: RePEc:vrs:foeste:v:13:y:2013:i:1:p:121-135:n:10
    DOI: 10.2478/foli-2013-0010
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    References listed on IDEAS

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