accept a lower price for the sale of its shares, i.e. tolerate higher underpricing. We test these hypotheses by considering … of the shareholders and relate them to both the probability of the IPO and the underpricing. We show that companies held … by less diversified shareholders are more likely to go public and suffer a higher underpricing. We show that, as …

We estimate the structural links between IPO allocations, pre-market information production, and initial underpricing … returns, within the context of theories of bookbuilding. Using a sample of both US and international IPOs we find evidence of … interpret this as indicative of diminished information production. ? Initial returns, which reflect a significant indirect cost …

underpricing. We make a realistic modification to the theory by allowing discrete prices, quantities and bids. We show that … underpricing can be made arbitrarily small by choosing a sufficiently small price tick size and a sufficiently large quantity …

behind bidder behaviour and underpricing is the volatility of bond returns. Since there is no evidence that bidders are risk … auctions during the period 1992-99. Average underpricing amounts to 0.041% of face value. Theory suggests that underpricing may …

IPO initial returns reached astronomical levels during 1999-2000. We show that the regime shift in initial returns and … underpricing. After controlling for these changes, there appears to be little special about the 1999-2000 period, aside from the …

evaluate one aspect of the liquidity of the bonds---the underpricing when the bonds are issued. We show that the structure of … the rebate creates additional incentives to underprice the bonds when they are issued, and that the underpricing is larger … are strategically underpricing the bonds to increase the tax subsidy, or both. Several findings point to strategic …

examines the extent to which the auction mechanisms are responsible for underpricing. Empirically, I find that even for the … the concurrent secondary market, although this underpricing is reduced by half relative to the older mechanism. The … auctions are modeled in a multi-unit common-value setting with a winner’s curse problem. Underpricing results in equilibrium …

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 …