Share Issuance and Expected Returns Around the World

Adam Zaremba , Szymon Okoń


Practitioners and academics often consider initial public offering activity to be a gauge of investor optimism and market valuation. This study investigates the cross-sectional implications of this concept at the country level. The authors use sorting and cross-sectional tests to examine linkages between past share issuance and future returns across 78 countries from 1995 to 2015. They find convincing and robust evidence that share issuance is negatively related with future returns across countries. Markets with high past stock issuance markedly underperform markets with low stock issuance. This phenomenon is particularly strong across small countries but is insignificant across large ones.
Author Adam Zaremba (WZ / KIiRK)
Adam Zaremba,,
- Department of Investment and Capital Markets
, Szymon Okoń (WZ / KIiRK)
Szymon Okoń,,
- Department of Investment and Capital Markets
Journal seriesJournal of Investing, ISSN 1068-0896, e-ISSN 2168-8613, (0 pkt)
Issue year2016
Publication size in sheets0.5
Keywords in Englishshare issuance, asset pricing, hot issue market, IPO, initial public offerings, return predictability, asset pricing, country-level anomalies, country selection strategies, cross section of stock returns
Languageen angielski
Score (nominal)5
Score sourcejournalList
ScoreMinisterial score = 0.0, 09-06-2020, ArticleFromJournal
Ministerial score (2013-2016) = 5.0, 09-06-2020, ArticleFromJournal
Publication indicators WoS Citations = 2
Citation count*8 (2020-09-10)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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