exhibit underpricing; such studies have also attempted to identify the reasons for this underpricing phenomenon. Utilizing … research and development (R&D) can be important factors that influence IPO underpricing. However, these studies have not … demonstrated how venture capital might function as a moderating force between R&D investment and the underpricing of IPOs. This …

Lower underpricing amongst venture-backed IPOs has been attributed to a certification role for venture capitalists. We … argue that differences in underpricing per se are uninformative and possibly misleading when not controlling for differences … in entrepreneurs` incentives to control underpricing. Using 1980s and 1990s data, we show that entrepreneursââ …