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We examine financing activities of newly public firms for evidence on capital staging in the public equity market. Staging (sequential financing) can increase issuance costs but can limit costs associated with overinvestment. We find evidence consistent with the hypothesis that staging is...
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Frontmatter -- Contents -- List of Tables and Figures -- Acknowledgments -- List of Abbreviations -- CHAPTER 1 Europe … Financial Interests, 1992–1994 -- CHAPTER 6 A Brussels Intervention and Europe’s New Stock Markets, 1994–2007 -- CHAPTER 7 … players to Europe. But they also chipped away at the European social compacts between national governments and citizens …
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Clustering of IPO underwriting spreads at 7% poses two important puzzles: Is the market for U.S. equity underwriting services anti-competitive and why do equity underwriters invest in reputation-building? This study resolves both puzzles. Modeling endogeneity of firm-underwriter choice using a...
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The paper proposes a novel direction to rationalize and quantify investors' flipping behavior and its effect on underpricing in IPOs through the use of a structural approach mode. The outcome is a proxy value that replicates investors' flipping behavior. When tested empirically, the model...
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