10.4225/03/5934b6a2f4145 Pham, Peter K. Peter K. Pham Kalev, Petko S. Petko S. Kalev Steen, Adam B. Adam B. Steen Underpricing, Stock Allocation, Ownership Structure and Post-Listing Liquidity of Newly Listed Firms Monash University 2017 monash:2104 Ownership structures Underpricing Initial public offerings 2000 1959.1/2104 Allocation process Post-listing liquidity 2017-06-05 01:40:49 Journal contribution https://bridges.monash.edu/articles/journal_contribution/Underpricing_Stock_Allocation_Ownership_Structure_and_Post-Listing_Liquidity_of_Newly_Listed_Firms/5072455 This study investigates the relationships between underpricing, ownership structure and post-listing liquidity of Initial Public Offerings (IPOs). It is argued that increasing the degree of underpricing induces both broader investor participation and creates a more diffuse ownership structure. These two factors in turn are positively associated with the level of post-listing trading, and therefore offer an explanation of how underpricing can influence liquidity. Our results indicate that underpricing is related to the shareholder distribution formed after the allocation process. Moreover, it is positively associated to post-listing liquidity. These relationships are robust and possess a high degree of statistical and economic significance.