underpricing in their firms’ Initial Public Offerings (IPOs) by, for example, choosing highly reputable investment bankers as … underwriters. We argue that entrepreneurs can, and will, minimize underpricing, but that they will do so only to an extent that is … States: entrepreneurs will minimize underpricing until their marginal wealth losses equal the marginal cost of reducing …

conflicts and thus underpricing (Baron (1982); Biais, Bossaerts, and Rochet (2002)). Consistent with this prediction, we show … lower initial returns, after controlling for other influences on underpricing and a variety of endogeneity concerns. These …

We estimate the structural links between IPO allocations, pre-market information production, and initial underpricing …

underpricing. After controlling for these changes, there appears to be little special about the 1999-2000 period, aside from the …

how deregulation affects corporate structure. In the benchmark case where the government maximizes privatization proceeds …

-term increase in volume. Incentives have been surprisingly effective in meeting stated privatization objectives. A dollar spent on … retail incentives helps to attract about 21 times as many investors as a dollar spent on underpricing. Individual …

, the larger the necessary underpricing. When inequalities are large this leads to voucher privatization. Shifting the …We analyse politically motivated privatization design in a bipartisan environment where politicians lack commitment … power. Suppose the median class voters a priori favour redistributive policies. If the privatization programme succeeds in …

Our model of the initial public offering process links the three main empirical IPO ‘anomalies’ – underpricing, hot … of having exuberant expectations regarding future performance. Underpricing and long-run underperformance emerge as … underwriters attempt to maximize profits from the sale of equity, at the expense of these exuberant investors. Underpricing serves …