Abstract:

An effective capital market fulfils a number of important functions, which makes it one of the factors determining economic development. Financial anomalies, which are a hindrance to market efficiency, have become the subject of interest of many researchers since the 1960s. The price effects associated with |POs are examples of capital market anomalies and, as such, they have been extensively described. The occurrence of short-term underpricing and the effects of long-term underperformance on financial markets are of major importance for both companies raising capital and investors.