The Israeli stock market experienced abnormally high IPO activity from 1992 to 1994 with 356 companies listing, compared with 313 companies that conducted IPOs from 1985 to 2010, excluding that “bubble period.”

This event produces a sort of “natural experiment” that allows the evaluation of the effect of regulation and listing rules on IPOs and the trading of small-cap companies.

This research is an analysis of a sample of IPOs, and was performed on two complementary groups — companies that issued shares to the public in the “bubble” period and have since stopped trading and those that sold shares to the public during the period and are still trading on the TASE.