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Title: The tender system - reduces underpricing and increases market efficiency
Authors: How, Hee Teck
Ng, Ngee Cheng
Poh, Lee Lee
Keywords: DRNTU::Business::Finance
Issue Date: 1994
Abstract: This report presents the empirical findings on the efficacy of the dual-tranche system of share flotation and/or the newly introduced "when-issued" market in increasing the proceed from new issues, reducing underpricing and improving market efficiency in Singapore. Results showed that issuers indeed raised reasonably more money on a per share basis and underpricing was reduced in the tender tranche as a consequence. Tests for market efficiency indicated that the weighted-bids does not provide significant insight into an issue's probable short-run equilibrium price while "when-issued" trading has helped to improve market efficiency.
Rights: Nanyang Technological University
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:NBS Student Reports (FYP/IA/PA/PI)

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