A note on the pricing of IPOs
This paper studies the pricing of IPOs in a tractable model in which an investment bank faces some investors with superior information. We show how this can lead to underpricing and we make a number of empirical predictions.
Year of publication: |
2010
|
---|---|
Authors: | Lundtofte, Frederik |
Published in: |
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 106.2010, 2, p. 105-107
|
Publisher: |
Elsevier |
Keywords: | IPO underpricing Monopoly pricing Fixed-price auction Risk aversion |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Growth Forecasts, Belief Manipulation and Capital Markets
Lundtofte, Frederik, (2012)
-
Idiosyncratic Risk and Higher-Order Cumulants
Lundtofte, Frederik, (2011)
-
Institutional Quality, Trust and Stock-Market Participation: Learning to Forget
Asgharian, Hossein, (2014)
- More ...