This study fills a gap in previous research by examining whether underpricing occurs in the after-market for the entire population of Internet initial public offerings (IPOs). Results indicate that the mean first day and first week returns (excluding the first day) for an Internet firm was 80.5 percent and-1 percent. The first day market-adjusted returns using the NASDAQ and S&P 500 Indexes as benchmarks were 83.4% and 83.3%. The first week market-adjusted returns were -2% and -1%.
AN ANALYSIS OF THE PERFORMANCE OF INITIAL PUBLIC OFFERINGS IN THE "HIGH FLYING" INTERNET INDUSTRY1
The Internet industry has received an enormous amount of publicity due to …