scholarly journals Speculative Prices and Popular Models

1990 ◽  
Vol 4 (2) ◽  
pp. 55-65 ◽  
Author(s):  
Robert J Shiller
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Rational Expectations ◽  
Survey Methods ◽  
Common Stock ◽  
Stock Market Crash ◽  
Public Offerings ◽  
True Model ◽  
Data Collection Effort ◽  
The U.S

The key idea of rational expectations models is to assume that people know (or behave as if they know) the true model that describes the economy. However, popular economic models (the models that are used by the broad masses of economic actors to form their expectations) are obviously not the same as those held by economists. This paper reports on data collection effort on popular models, using questionnaire survey methods, with the purpose of understanding speculative markets. I will report here on my research to understand the U.S. stock market crash of October 1987; research Fumiko Konya, Yoshiro Tsutsui, and I undertook to understand the Japanese stock market crash of October 1987; research Karl Case and I undertook to understand recent real estate booms; and research John Pound and I undertook to understand the periodic “hot” markets for initial public offerings (IPO's) of common stock.

The stock market as a source of capital: Some lessons from initial public offerings in Italy

1996 ◽  
Vol 40 (3-5) ◽  
pp. 1057-1069 ◽  
Author(s):  
Marco Pagano ◽  
Fabio Panetta ◽  
Luigi Zingales
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Public Offerings

scholarly journals Pricing And Long-Run Performance Of The Venture-Backed And Nonventure-Backed IPOS

2011 ◽  
Vol 2 (6) ◽  
Author(s):  
Arvin Ghosh
Keyword(s):  
Stock Market ◽  
Venture Capital ◽  
Initial Public Offerings ◽  
Cash Flows ◽  
Venture Capitalists ◽  
Regression Equations ◽  
Public Offerings ◽  
Long Run ◽  
First Time ◽  
Prevalent Form

Initial Public Offerings (IPOs) were the most prevalent form to raise capital by firms wanting to go public during the last decade (1990 2000) in the United State. There were thousands of firms that went public for the first time, mostly in the technology-heavy NASDAQ stock market. Along with the regular IPOs came the IPOs backed by venture capitalists, who specialize in financing promising startup companies and bringing them public. As one-third of the IPOs were backed by venture capitalists during 1990 2000, our purpose here is to examine the pricing and long-run performance of the venture-backed and nonventure-backed IPOs that were issued in the NYSE and NASDAQ stock market during the period covered by our study. We have found, among others, that the venture-backed IPOs performed much better as compared to the nonventure-backed IPOs. The returns of the former were consistently higher than the latter during 1900 2000. Also, the price returns as well as the operating ratios and the growth of cash flows, were higher both in the NYSE and NASDAQ market. The regression equations also confirmed closer association with the independent variables belonging to the IPOs backed by venture capital than the non-venture capital.

Initial Public Offerings in Germany between 1997 and 2015

2018 ◽  
pp. 558-572
Author(s):  
Andreas Oehler ◽  
Tim Herberger ◽  
Matthias Horn
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Market Liquidity ◽  
Subprime Crisis ◽  
Market Returns ◽  
Stock Market Returns ◽  
Public Offerings ◽  
German Stock ◽  
German Stock Market ◽  
Dot Com

This chapter focuses on the German IPO market from 1997 to 2015. More specifically, it provides a descriptive overview of the IPO activities in Germany in the last two decades, and analyzes the IPO market’s dependence on the yearly return and turnover of the German stock market. It shows that most IPOs and highest volumes were observed during the dot-com bubble phase (1997–2000) and that the German IPO market’s liquidity shows a stable development in the last years after the subprime crisis. The results of the regression analyses show that the IPO market activity strongly depends on the overall stock market turnover. But the stock market returns play a subordinated role for the IPO market liquidity in Germany.

scholarly journals Crises boursières, bulles spéculatives et raitionalité économique

2005 ◽  
Vol 20 (4) ◽  
pp. 781-790
Author(s):  
Marie-Christine Adam ◽  
Ariane Szafarz
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Markets ◽  
Critical Analysis ◽  
Rational Expectations ◽  
Financial Analysts ◽  
Stock Market Crash ◽  
Speculative Bubble ◽  
The World

In October 1987 the stock markets across the world witnessed an unprecedent crash of which both economists and financial analysts are still trying to under-stand the origin. One of the most controversial interpretations of this event is the speculative bubble hypothesis according to which long overvalued stock prices readjusted to realistic values in october 87. This interpretation is particularly interesting given that new "bubble" theories have been developed within the framework of rational expectations models during the last ten years. This paper presents a critical analysis of these theories and evaluates their potential for our understanding of the stock market crash.

scholarly journals Co-Movements Of U.S. And European Stock Markets Before And After The 2008 Gloal Stock Market Crash

2015 ◽  
Vol 10 (2) ◽  
pp. 83-98
Author(s):  
Ilhan Meric ◽  
Lan Ma Nygren ◽  
Jerome T. Bentley ◽  
Charles W. McCall
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Empirical Studies ◽  
Portfolio Diversification ◽  
Stock Market Crash ◽  
Market Crashes ◽  
Before And After ◽  
European Stock Markets ◽  
Global Stock ◽  
The U.S

Abstract Empirical studies show that correlation between national stock markets increased and the benefits of global portfolio diversification decreased significantly after the global stock market crash of 1987. The 1987 and 2008 crashes are the two most important global stock market crashes since the 1929 Great depression. Although the effects of the 1987 crash on the comovements of national stock markets have been investigated extensively, the effects of the 2008 crash have not been studied sufficiently. In this paper we study this issue with a research sample that includes the U.S stock market and twenty European stock markets. We find that correlation between the twenty-one stock markets increased and the benefits of portfolio diversification decreased significantly after the 2008 stock market crash.

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