| Abstract: | This paper examines the underpricing of IPOs of financial institutions over the period 1983 to 1987. Based on a sample of 185 banks and savings and loan associations (including S&L conversions) and a control sample of 1,361 industrial firms, results indicate that in general IPOs of financial institutions are significantly less underpriced than those of the non-financial institutions. In particular, the IPOs of non-S&L conversion financial institutions are less underpriced than the IPOs of non-financial institutions. |
