Financial Innovation and Growth : Listings and IPOs from 1880 to World War II in the Athens Stock Exchange

The study explore the growth of the Athens Stock Exchange through new listings and IPOs over the period 1880-1940. We examine institutional changes in exchange governance and listing requirements. On a theme that has never been addressed before, we find that simple listings were far more than actual IPOs while during 'hot' listing periods IPO activity was relatively limited. IPOs in Greece remained unregulated throughout the period and there is only partial evidence on the involvement of professional investment banking services. IPOs over-pricing in the early decades gives way to under-pricing in the 1920s. The growth of the Greek stock market was coincident with development episodes in the economy, as well as phases of protectionism. It has been driven by a demand for listings basically serving the liquidity needs of company owners. Finally, the study introduces the "quasi-IPOs" and report that they offer more accurate assessment of the role of the Exchange in the financing of listing firms