(Round intermediate calculations to at least 4 decimal
places.)
One of the theories regarding initial public offering (IPO)
pricing is that the initial return y (change from offer to
open price) on an IPO depends on the price revision x
(change from pre-offer to offer price). Another factor that may
influence the initial return is whether or not it is a high-tech
firm. The following table shows a portion of the data on 264 IPO
firms from January 2001 through September 2004; the entire data
set, can be found on the excel link.
| Initial Return (%) | Price Revision (%) | High-tech | Initial Return (%) | Price Revision (%) | High-tech | ||||
| 38.33 | 4.27 | No | 0.00 | –2.70 | No | ||||
| 8.81 | –33.58 | No | 46.98 | –52.30 | Yes | ||||
| –6.54 | –10.39 | No | 13.75 | 14.93 | Yes | ||||
| 13.70 | –45.43 | Yes | 0.00 | –14.55 | No | ||||
| 0.00 | –8.59 | No | –1.11 | 5.38 | No | ||||
| 5.97 | 0.00 | Yes | 20.81 | 1.01 | No | ||||
| 19.79 | 0.00 | Yes | –2.12 | 18.26 | No | ||||
| 0.00 | –27.87 | No | –4.96 | –5.61 | Yes | ||||
| 0.00 | –10.33 | No | –5.68 | 3.56 | No | ||||
| 0.00 | –1.75 | No | –4.22 | –23.89 | No | ||||
| –21.05 | –9.02 | No | 4.37 | –10.92 | No | ||||
| 4.53 | 8.22 | No | –4.94 | –9.17 | Yes | ||||
| –5.83 | 4.17 | No | –3.86 | –52.03 | Yes | ||||
| 12.46 | 10.08 | Yes | 9.50 | 0.00 | No | ||||
| –7.66 | –30.12 | Yes | 23.83 | 2.23 | No | ||||
| 23.49 | –40.16 | Yes | 0.00 | –40.15 | No | ||||
| –1.86 | 3.99 | Yes | –1.68 | –45.64 | Yes | ||||
| 11.83 | –54.63 | Yes | 5.99 | –40.55 | Yes | ||||
| –1.18 | –17.22 | No | –2.70 | 0.00 | Yes | ||||
| 13.65 | 11.98 | Yes | 10.50 | –46.59 | Yes | ||||
| –35.69 | –7.06 | No | 26.88 | –3.14 | No | ||||
| –5.53 | 11.63 | No | –7.66 | –1.41 | Yes | ||||
| 21.48 | 52.55 | Yes | 13.73 | –34.10 | Yes | ||||
| 14.81 | 0.30 | No | –2.84 | –1.75 | No | ||||
| –4.84 | –4.28 | Yes | 11.77 | 0.00 | No | ||||
| 4.31 | –39.41 | Yes | 11.05 | 4.17 | No | ||||
| 1.96 | –16.72 | Yes | 5.32 | –14.85 | No | ||||
| 0.00 | –34.48 | No | 8.71 | 11.89 | Yes | ||||
| 11.96 | 18.57 | No | 21.08 | 12.82 | No | ||||
| 11.44 | 0.00 | Yes | 19.38 | –6.48 | Yes | ||||
| 2.65 | 0.00 | No | 0.00 | –21.26 | Yes | ||||
| 14.87 | –5.92 | Yes | 12.87 | –14.56 | Yes | ||||
| 16.32 | –25.51 | No | 16.85 | 36.08 | No | ||||
| 6.44 | –3.93 | No | 0.00 | 11.69 | No | ||||
| 7.49 | –23.30 | Yes | 12.18 | 0.67 | No | ||||
| 1.66 | 0.00 | No | –3.97 | 6.41 | No | ||||
| 12.84 | 0.00 | Yes | 0.00 | 0.00 | No | ||||
| –0.55 | 3.96 | No | –0.28 | –1.54 | Yes | ||||
| 52.26 | 24.93 | No | 33.52 | –33.88 | Yes | ||||
| 57.36 | –0.35 | No | –3.12 | –28.74 | Yes | ||||
| 2.23 | 11.49 | Yes | 25.70 | 13.28 | Yes | ||||
| 0.00 | –12.19 | No | –1.21 | –22.64 | Yes | ||||
| 13.70 | –19.30 | Yes | 7.78 | –47.25 | No | ||||
| 18.35 | –23.90 | No | 3.10 | –34.07 | No | ||||
| 5.74 | 2.43 | No | 2.47 | –4.26 | Yes | ||||
| 0.00 | 0.00 | No | 1.49 | –10.26 | Yes | ||||
| 7.33 | –4.55 | Yes | 16.43 | –21.50 | No | ||||
| 23.45 | 6.72 | No | 12.34 | –29.43 | No | ||||
| 25.56 | 24.18 | Yes | 3.27 | –6.44 | No | ||||
| 0.00 | –22.91 | Yes | 0.00 | 15.57 | No | ||||
| –3.99 | –33.85 | No | 0.17 | 16.94 | No | ||||
| –14.57 | –15.22 | Yes | 22.49 | 1.18 | No | ||||
| 24.45 | –8.69 | Yes | 0.00 | 2.54 | No | ||||
| 0.00 | 5.97 | No | 27.27 | –4.15 | No | ||||
| 3.92 | –8.92 | No | 2.91 | –2.24 | Yes | ||||
| 0.00 | –16.55 | No | 7.29 | 1.01 | Yes | ||||
| 2.37 | –5.37 | Yes | –10.95 | 0.00 | No | ||||
| 31.10 | 20.86 | No | –2.65 | –13.73 | Yes | ||||
| 11.48 | 22.37 | No | 3.65 | –26.31 | Yes | ||||
| 2.66 | –4.83 | Yes | 7.52 | 0.00 | No | ||||
| 19.08 | –37.68 | Yes | 23.91 | –10.93 | Yes | ||||
| 0.00 | –2.64 | No | –0.80 | –8.89 | No | ||||
| –3.38 | –7.53 | No | 40.80 | 0.00 | No | ||||
| 8.73 | 9.54 | No | 7.80 | –26.71 | No | ||||
| 17.99 | 43.47 | Yes | 3.71 | –23.64 | No | ||||
| –2.64 | –35.51 | Yes | 3.27 | 7.31 | No | ||||
| 18.59 | –10.30 | No | –8.11 | 0.00 | No | ||||
| 7.18 | 0.00 | No | 18.65 | 0.00 | No | ||||
| 21.59 | 3.28 | No | 2.28 | 0.91 | No | ||||
| 12.42 | –8.85 | Yes | 13.55 | 13.55 | No | ||||
| 12.21 | –24.66 | No | 4.95 | –42.35 | Yes | ||||
| –7.17 | 0.00 | No | 2.22 | 0.00 | No | ||||
| 23.76 | 23.32 | Yes | –4.85 | 117.80 | No | ||||
| 0.00 | –27.52 | No | 0.00 | 10.86 | No | ||||
| –4.92 | –20.63 | Yes | –1.42 | –9.79 | No | ||||
| 8.93 | 0.33 | Yes | 13.23 | –13.81 | Yes | ||||
| –14.16 | –15.90 | Yes | –1.56 | –1.97 | Yes | ||||
| 0.00 | –1.65 | No | 0.00 | –20.10 | No | ||||
| 4.40 | –21.36 | Yes | –3.77 | 10.03 | No | ||||
| 21.41 | –2.39 | No | –5.35 | –23.72 | No | ||||
| 37.05 | 32.21 | Yes | 28.60 | 4.94 | Yes | ||||
| 8.25 | –40.66 | Yes | –17.86 | 0.09 | Yes | ||||
| 48.48 | 5.52 | No | 0.00 | 2.34 | No | ||||
| –7.06 | –61.70 | No | 36.50 | 28.46 | Yes | ||||
| –0.38 | –15.78 | No | 0.00 | 10.58 | No | ||||
| –15.57 | 0.00 | No | 24.08 | 20.97 | No | ||||
| 0.00 | –25.73 | No | –4.28 | –83.67 | No | ||||
| 8.04 | –14.95 | No | 34.05 | –17.00 | No | ||||
| 0.00 | –35.98 | Yes | 0.00 | –6.08 | Yes | ||||
| 8.86 | –0.31 | No | 2.73 | 1.39 | No | ||||
| –8.36 | 36.22 | No | 0.23 | –20.10 | No | ||||
| 17.70 | 29.71 | Yes | 0.00 | –32.88 | Yes | ||||
| 34.91 | 16.54 | No | 27.76 | 15.47 | Yes | ||||
| 18.42 | 0.00 | No | 10.49 | –2.89 | No | ||||
| 33.63 | 35.66 | Yes | 25.23 | 0.00 | No | ||||
| 0.00 | –8.85 | Yes | 9.74 | 0.00 | No | ||||
| 15.20 | –13.59 | No | 8.88 | –21.41 | Yes | ||||
| –24.68 | 0.00 | No | 4.69 | –25.50 | No | ||||
| 11.11 | 5.15 | No | 1.78 | 12.10 | Yes | ||||
| –14.27 | –19.99 | No | 0.00 | –24.54 | No | ||||
| 16.05 | 0.76 | No | 0.00 | –11.67 | No | ||||
| 3.91 | –27.16 | Yes | –23.56 | –26.02 | Yes | ||||
| –0.89 | –2.35 | No | 14.86 | 17.19 | Yes | ||||
