Abnormal returns of thrift versus non-thrift IPOs
- Cite this article as:
- Barth, J.R., Page, D.E. & Jahera, J.S. J Econ Finan (1999) 23: 15. doi:10.1007/BF02752682
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This paper examines the issue of underpricing for converting thrift institutions. Evidence has found this underpricing to be pervasive in the mutual-to-stock thrift conversion process. The issue is of importance given the debate over whether any windfall gains should accrue to depositors, managers, or taxpayers. An event study is conducted to determine if there is a significant difference between the initial returns of thrift and non-thrift IPOs. Our overall results indicate that a significant difference does exist.