Michaely, Roni; Shaw, Wayne H - In: Review of Financial Studies 7 (1994) 2, pp. 279-319
We test the empirical implications of several models of IPO underpricing. Consistent with the winner's-curse hypothesis, we show that in markets where investors know a priori that they do not have to compete with informed investors, IPOs are not underpriced. We also show that IPOs underwritten...