Discussion Paper Details
Please find the details for DP10558 in an easy to copy and paste format below:
Title: The Berlin Stock Exchange in Imperial Germany ? a Market for New Technology?
Author(s): Sibylle Lehmann and Jochen Streb
Publication Date: April 2015
Keyword(s): industrialisation, innovation, IPO and stock exchange
Programme Area(s): Economic History
Abstract: Analysing 474 cases of firms going public in the German capital between 1892 and 1913, we show that innovative firms could rely on the Berlin stock market as a source of financing. The data also reveal that initial public offerings (IPO) of innovative firms were characterized by particularly low underpricing, comparatively high first trading prices, and no long-run underperformance. We interpret these empirical results as evidence for the surprising fact that contemporary investors had rational expectations.
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Lehmann, S and Streb, J. 2015. 'The Berlin Stock Exchange in Imperial Germany ? a Market for New Technology?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10558