This article belongs to the special issue "Problems of Application Analysis in Knowledge Management and Science-Mathematics-Education".
Abstract
It is worthwhile to investigate abnormal performance of IPOs by incorporating investor sentiment. Using the method of Agent-based Computational Finance (ACF), we analyze the effect from different kinds of investor sentiment on IPOs first-day underpricing and long-term performance. The results show that individual investor’s sentiment is positively correlated with the IPO’s first-day underpricing and its long-run performance. In the long run, along with the rising of individual investor sentiment, IPOs’ long-term performance will change from underperforming to outperforming. This conclusion provides a more reasonable explanation for the different IPOs long-term performance.
License
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Article Type: Research Article
EURASIA J Math Sci Tech Ed, Volume 13, Issue 12, December 2017, 7707-7721
https://doi.org/10.12973/ejmste/77931
Publication date: 16 Nov 2017
Article Views: 2886
Article Downloads: 2417
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