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The litigation risk hypothesis of IPO underpricing posits that issuers underprice IPOs in an effort to avoid costly … litigation and that underpricing should be greater for issuers with ex-ante higher levels of litigation risk. This paper … underpricing does deter traditional IPO cases more compared to that effect in the pre-1995 period. In the period after that …
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This paper examines the initial public offering (IPO) valuations of issuers that return to the IPO market successfully after withdrawing their first IPO attempt. We find that these second-time IPOs sell at a significant discount relative to similar contemporaneous IPOs that succeed in their...
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