The Clustering of IPO Gross Spreads: International Evidence

Posted: 19 Jun 2002

Abstract

Patterns of clustering in IPO gross spreads can be identified not only in the U.S., but in many other markets across the world. The evidence indicates, however, that these clustering patterns are not necessarily collusive. Clustering is widespread in many countries with low gross spreads. In fact, the amount of clustering observed is negatively related to the gross spread level of a country. Additionally, an analysis of abnormal gross spreads following Hansen (2001) indicates that few clusters contain abnormal positive surpluses.

Keywords: initial public offerings, gross spreads, clustering

JEL Classification: G24, G32

Suggested Citation

Torstila, Sami, The Clustering of IPO Gross Spreads: International Evidence. Journal of Financial and Quantitative Analysis. Available at SSRN: https://ssrn.com/abstract=311200

Sami Torstila (Contact Author)

Aalto University ( email )

P.O. Box 21210
Helsinki, 00101
Finland
+358 40 353 8069 (Phone)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
1,151
PlumX Metrics