Excess return of initial public offerings or why so many firms "leave so much money on the table".

Risk-adjusted returns (underpricing) and number of German IPOs from 1997 - 2014 in p.c.:
But the IPO-Undepricing is overvalued because of the classical calculation method. In fact, it doesn't have any meening neither for the old shareholders nor for the company itself.

A liquidity-based calculation approach shows that the real underpricing is lower than 2% only* - and that the old shareholder and the company itself will benefit from an increasing positive initial return.

Details will follow shortly in my analytical study**:

Why Underpricing doesn't matter

* 1,89% - empirical analysis for German IPOs since 2005; the classical calculated Underpricing is about 5,15%

** In cooperation with Claudia Ascherl, University of Regensburg, Lehrstuhl für Immobilienmanagement

These are the 4-day-returns in p.a. - the p.a.-returns are 90-fold higher!