Showing 1 - 10 of 49
This clinical paper analyses a new way of conducting IPOs which has recently been introduced in the U.K.  The essential feature of Accelerated IPOs (aIPOs) is that investors from syndicates to bid for the entire offering, and then execute an immediate IPO (within a week).  Vendors can use an...
Persistent link: https://www.econbiz.de/10011004200
We develop a model in which cash-constrained entrepreneurs seek a venture capitalist (VC) to finance a new firm. Costly monitoring is employed by VCs to reduce entrepreneurial moral hazard. When monitoring reveals poor performance, VCs want to punish the entrepreneur with liquidation. However,...
Persistent link: https://www.econbiz.de/10010661352
We present a model of cash constrained entrepreneurs who need an investor to finance their project. Investors can either be uninformed, such as individual bondholders, or informed, such as venture capitalists and banks. There is an entrepreneurial moral hazard problem, which can be partially...
Persistent link: https://www.econbiz.de/10010661398
We posit that screening IPOs requires specialized labor which, in the short run, is in fixed supply.  Hence, a sudden increase in demand for IPO financing increases the compensation of IPO screening labor.  Increased compensation results in reduced screening which encourages sub-marginal firms...
Persistent link: https://www.econbiz.de/10011004161
Was the London Stock Exchange (LSE) little more than a Dickensian den of speculation, or did it make a contribution to industrial development in Interwar Britain?  The interwar stock market laboured under problems of weak disclosure, inadequate investor protection and ineffective...
Persistent link: https://www.econbiz.de/10005047916
Market share objectives are prominent in many industries, especially where managers pay much attention to league table rankings. This paper explores the strategic rationale for giving managers incentives based on market share in an oligopoly competing in strategic substitutes. Moreover, the...
Persistent link: https://www.econbiz.de/10005047966
Allegations of British capital market failure are numerous, range from claims of domestic investor bias before 1914 to charges of short-termism against institutional investors towards the end of the last century, and are frequently contentious. This paper revisits this literature by pointing up...
Persistent link: https://www.econbiz.de/10005047989
Despite the central importance of investors to all IPO theories, relatively little is known about their role in practice. In this paper we survey institutional investors about how they assess IPOs, what information they provide to the investment banking syndicate, and the factors they believe...
Persistent link: https://www.econbiz.de/10010661372
The credit derivatives market provides a liquid but opaque forum for secondary market trading of banking assets. I show that when entrepreneurs rely upon the certification value of bank debts to obtain cheap bond market insurance, the existance of a credit derivatives market may cause them to...
Persistent link: https://www.econbiz.de/10010661416
Until 1970, the New York Stock Exchange prohibited public incorporation of member firms. After the rules were relaxed to allow joint stock firm membership, investment-banking concerns organized as partnerships or closely-held private corporations went public in waves, with Goldman Sachs (1999)...
Persistent link: https://www.econbiz.de/10010661417