MARKET EFFICIENCY: THE ROLE OF ISSUING HOUSES

Abstract

Introduction In a recent article in this Journal Newbould, Stray and Wilson (1976) analysed the discounts or premiums on the price of newly issued equities by reference to the issue adviser. Their conclusions, based on a comparison between 1959–63 and 1969–73, were that (a) the most efficient advisers (those showing the lowest discounts) gained business between these periods and (b) new entrants to the market accounted in part for the general increase in efficiency observed over the decade. The evidence therefore appeared to support their basic hypotheses that resources tend to flow from inefficient towards efficient firms and that efficiency tends to rise in markets where freedom of entry exists.

Citation

BUCKLAND, R. and YEOMANS, K.A. (1977), "MARKET EFFICIENCY: THE ROLE OF ISSUING HOUSES", Journal of Economic Studies, Vol. 4 No. 1, pp. 59-66. https://doi.org/10.1108/eb002469