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School of Business and Management

School Research Seminar Series

17 October 2012

Time: 1:00 - 2:00pm
Venue: Francis Bancroft Building, Room FB4.04/08 (4th Floor)

Speaker
Susana Alvarez- Otero, Associate Professor of  Finance. University of Oviedo (Spain).

Bios
Susana Alvarez Otero is Associate Professor of Finance in the University of Oviedo at the Faculty of Economics and Business. She pursues research interests located at corporate investments, mutual fund analysis and specially, initial public offerings (IPOs).  Her papers on IPOs have analysed all the facts around these types of equity issues: initial underpricing, low long-term returns, operating performance of the companies after going public and the role of underwriting syndicates, among others.

Seminar title
Pricing of IPOs: Evidence from Spanish Firms

Abstract
This research analyses how IPO initial return volatility affects the valuation of firms that go public. The goal is to test whether this new metric for evaluating the pricing of IPOs is relevant on the Spanish capital market, bearing in mind that the degree of ex-ante uncertainty regarding the value of the firm for IPOs in Spain is lower than in other countries, as is the level of underpricing. It is also analysed how the main explanations found in the literature for the anomaly of underpricing are affected by this new metric. Consistent with IPO theory, both the asymmetry of information hypothesis and the hot IPO market hypothesis are confirmed in this study. The results do not provide conclusive support for the signalling hypothesis for underpricing.

Research themes
Initial Public Offerings (IPOs), Mutual Fund Analysis and Corporate Investments.

Additional information
The seminar will run from 1.00 to 2:00pm (suggested: 50 minute talk and 10 minute Q&A)

Please confirm your attendance by emailing a.alele@qmul.ac.uk

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