Yung, Chris; Çolak, Gönül; Wang, Wei - In: Journal of Financial Economics 89 (2008) 1, pp. 192-208
We develop a model in which time-varying real investment opportunities lead to time-varying adverse selection in the market for IPOs. The model is consistent with several stylized facts known about the IPO market: economic expansions are associated with a dramatic increase in the number of firms...