摘要：This study documents that underpricing of IPOs has significant explanatory power ofsystematic risk in after-market. Specifically, initial return is positively correlated with systematicrisk but is not significantly correlated with idiosyncratic risk. This result could be interpreted asevidence that initial return of IPOs is a cost necessary to resolve inherent problems in the IPOprocess, rather than a reflection of irrational investor behaviors.
关键词：underpricing; irrational behaviors; initial public offerings
