The effect of U.S. stocks' IPO from financial crisis

Abstract

The financial crisis shocked the whole capital market in 2008; the global economy began to stick in another dilemma after the great depression in the 1930s. Since underpricing is commonly existed in stock markets, and underpricing itself is always measured by initial return rate, which reflects the potential value in initial day and the investing perspective, therefore, in order to identify the effects of financial crisis on U.S. stock market, we will analyze initial return to see if this crisis did affect IPOs. In this paper, we picked up 343 IPOs of financial sector in NYSE from 2006 to 2010, then studied in the regression results by using STATA.