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Financial Innovation and Growth: Listings and IPOs from 1880 to World War II in the Athens Stock Exchange

London School of Economics, Working Paper

70 Pages Posted: 11 Jan 2013 Last revised: 30 Nov 2015

Stavros Thomadakis

University of Athens - Faculty of Economics

Dimitrios Gounopoulos

University of Bath

Christos Panagiotis Nounis

University of Athens - Faculty of Economics

Michalis Riginos

University of Athens - School of Economics

Date Written: September 15, 2014

Abstract

The study explore the growth of the Athens Stock Exchange through new listings and IPOs over the period 1880-1940. We examine institutional changes in exchange governance and listing requirements. On a theme that has never been addressed before, we find that simple listings were far more than actual IPOs while during 'hot' listing periods IPO activity was relatively limited. IPOs in Greece remained unregulated throughout the period and there is only partial evidence on the involvement of professional investment banking services. IPOs over-pricing in the early decades gives way to under-pricing in the 1920s. The growth of the Greek stock market was coincident with development episodes in the economy, as well as phases of protectionism. It has been driven by a demand for listings basically serving the liquidity needs of company owners. Finally, the study introduces the "quasi-IPOs" and report that they offer more accurate assessment of the role of the Exchange in the financing of listing firms.

Keywords: listings, initial public offerings, financial history

JEL Classification: N23, N43, G18

Suggested Citation

Thomadakis, Stavros and Gounopoulos, Dimitrios and Nounis, Christos Panagiotis and Riginos, Michalis, Financial Innovation and Growth: Listings and IPOs from 1880 to World War II in the Athens Stock Exchange (September 15, 2014). London School of Economics, Working Paper. Available at SSRN: https://ssrn.com/abstract=2199045 or http://dx.doi.org/10.2139/ssrn.2199045

Stavros Thomadakis

University of Athens - Faculty of Economics ( email )

8 Pesmazoglou street
GR-10559 Athens
Greece
3-0 1 3236021 (Phone)
3-0 1 3225542 (Fax)

Dimitrios Gounopoulos (Contact Author)

University of Bath ( email )

School of Management,
Wessex House, Claverton Down
Bath, BA2 7AY
United Kingdom

Christos Panagiotis Nounis

University of Athens - Faculty of Economics ( email )

8 Pesmazoglou street
GR-10559 Athens
Greece

Michalis Riginos

University of Athens - School of Economics ( email )

5 Stadiou Strt
Athens, 12131
Greece

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