This study documents differences between two widely known IPO selling methods: the auction method and bookbuilding method for a sample of US IPOs. We employ a matched firm technique to compare the two IPO selling methods and empirically test hypotheses relating to the two selling methods. Our...

This paper examines the longer-term performance of IPOs for several years (up to five years) after the expiration of the stabilization period. It seeks to determine whether the form of managerial compensation affects long-term performance after controlling for other influential factors...

We study the relationship between underwriter prestige, family control, and IPO underpricing in an international setting. Data are collected for 5,789 firms that went public across twenty-five countries between 1995 and 2002. We find that non-penny-stock and non-U.S. IPOs from countries where...

The aviation industry has been hard hit in recent years. While there are numerous factors that have contributed to the industry's dilemma, rising and volatile insurance premiums - particularly after the events of 9/11 - have posed a particular problem for many airline managers. Despite a general...

Getting an early foot in the door of a young start-up firm through venture capital investments has on average been a risky, but a highly profitable investment strategy. The possibility to reap similarly large profits in a country that leads the world in new business establishments, whose people...

This study examines the impact of train accidents on the stock price performance of the involved railroad companies. We employ a sample of 26 accidents involving trains operated by publicly traded U.S. and Canadian railroad companies between January 1993 and December 2003. Event study...

Using data for 2,391 non-financial firm commitment initial public offerings (IPOs) between January 1996 and December 2002, we examine the relation between pre-IPO insider ownership and underpricing for high-tech and low-tech IPOs. Contrary to the conventional wisdom that suggests that firms in...

The extant literature on initial public offerings (IPOs) generally assumes that a high degree of pre-IPO leverage serves as a positive signal of firm quality as it forces a firm's managers to adhere to tough budget constraints. Our paper questions the validity of this assumption when it is...

Debt capital represents one of the most important means with which German companies finance their business. Yet, despite its importance, academics and practitioners alike typically analyze debt capital separately from other components of a firm's capital structure components. One important...

Legal liability claims against airlines and airplane manufacturers following an aviation disaster are determined through a myriad of international treaties, intercarrier agreements, and federal and state laws. Which law applies in a specific situation depends on various circumstances surrounding...