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| Gueorgui I. Kolev |
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| ''Forecasting aggregate stock returns using the number of initial public offerings as a predictor'' |
| ( 2008, Vol. 7 No.13 ) |
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| Large number of Initial Public Offerings (IPOs) reliably predicts subsequent low equally weighted aggregate stock returns and the return differential between small and big firms, both in-sample and out-of-sample. The forecasting patterns are consistent with a behavioral story featuring investor sentiment and limits to arbitrage. |
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| Keywords: Initial Public Offerings |
JEL:
G3 - Corporate Finance and Governance: General |
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| Manuscript Received : Aug 31 2008 | | Manuscript Accepted : Oct 14 2008 |
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