Brav, Alon; Gompers, Paul A. - In: Review of Financial Studies 16 (2003) 1, pp. 1-29
In a sample of 2,794 initial public offerings (IPOs), we test three potential explanations for the existence of IPO lockups: lockups serve as (i) a signal of firm quality, (ii) a commitment device to alleviate moral hazard problems, or (iii) a mechanism for underwriters to extract additional...