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This paper uses a unique testing ground on the effect of price limits upon IPO pricing and initial returns. The Athens Stock Exchange offers the opportunity for this new experiment, as three substantial changes in limit regulations were implemented in a short period of eight years. The results indicate significant differences in initial returns. Effective price limits reduce underpricing in all market segments, without visible diminution of IPO activity. The introduction of mandatory book-building after price limits were phased out in Athens also led to reduced underpricing in the main market segment. Nevertheless, the existence of an independent effect of price limits explains why some regulators continue to use them to the present day.

This paper uses a unique testing ground on the effect of price limits upon IPO pricing and initial returns. The Athens Stock Exchange offers the opportunity for this new experiment, as three substantial changes in limit regulations were implemented in a short period of eight years. The results indicate significant differences in initial returns. Effective price limits reduce underpricing in all market segments, without visible diminution of IPO activity. The introduction of mandatory book-building after price limits were phased out in Athens also led to reduced underpricing in the main market segment. Nevertheless, the existence of an independent effect of price limits explains why some regulators continue to use them to the present day.

This paper uses a unique testing ground on the effect of price limits upon IPO pricing and initial returns. The Athens Stock Exchange offers the opportunity for this new experiment, as three substantial changes in limit regulations were implemented in a short period of eight years. The results indicate significant differences in initial returns. Effective price limits reduce underpricing in all market segments, without visible diminution of IPO activity. The introduction of mandatory book-building after price limits were phased out in Athens also led to reduced underpricing in the main market segment. Nevertheless, the existence of an independent effect of price limits explains why some regulators continue to use them to the present day.

One of the notable characteristics of modern financial markets is the convergence among financial institutions, which until recently preformed different tasks. To this end, the present study explores the bank-insurance phenomenon in the Greek market. It focuses on the development of financial conglomerates in the region, while arguing that the phenomenon is not as new as one would expect. A variant of the bank-insurance approach to financial services seems to have dominated the Greek market for over a century. An analysis of recent developments is also presented, with the evidence indicating a trend towards multi-venture partnerships as well as active involvement of multinational enterprises., peer-reviewed

This paper examines the impact of European Integration in the context of globalization on correlations between stock market returns. Furthermore, it looks at the impact of globalization in periods of crisis on stock market correlations of developed nations of Europe, US and Japan. The methodology used is a simple calculation framework based on the correlation coefficient. The results show that stock market integration in Europe has increased substantially in recent years though it is not yet complete. Moreover, stock markets correlation between Europe,Japan and the US is stronger than ever and is likely to continue to grow. This is more noticeable for the NIKKEI index which recently is very clearly affected by the movement in other major markets. Equity portfolios on developed countries cannot be constructed on the basis of a country allocation strategy anymore., peer-reviewed