Title :
Heterogeneous Beliefs, Market Environment and IPO Underpricing
Author :
Zhang, Haifeng ; Zhang, Wei ; Zou, Gaofeng ; Zhang, Yongjie
Author_Institution :
Sch. of Manage., Tianjin Univ., Tianjin, China
Abstract :
IPO under pricing is always the focus of finance theory and practice. According to behavioral finance, this paper explores the inherent process of IPO under pricing from microscopic investor behavior and market environment by constructing an agent-based computational model. The conclusions show that the uppermost causation for severe IPO under pricing is the presence of crazy investors and hot market environment rather than the beliefs divergence. So it is necessary to strengthen the information disclosure and investors´ education.
Keywords :
behavioural sciences; multi-agent systems; pricing; IPO underpricing; agent-based computational model; behavioral finance; heterogeneous beliefs; information disclosure; initial public offerings; investors education; market environment; microscopic investor behavior; Computational modeling; Economics; Finance; Microscopy; Pricing; Protocols; Sensitivity; IPO underpricing; agent-based computational model; heterogeneous beliefs; market environment;
Conference_Titel :
Computational Sciences and Optimization (CSO), 2011 Fourth International Joint Conference on
Conference_Location :
Yunnan
Print_ISBN :
978-1-4244-9712-6
Electronic_ISBN :
978-0-7695-4335-2
DOI :
10.1109/CSO.2011.144
