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In this study, I develop a model that describes underwriters' price-setting behavior during initial public offerings (IPOs). Because of reputational concerns during high valuation periods, top-tier underwriters adjust the initial offer price valuation to the lower, historical industry valuation....
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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 …
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Israel’s compliance with International Organization of Securities Commissions’ objectives and Principles of Securities Regulation has been assessed. The regulatory regime is well developed and in most respects is comparable with that of major jurisdictions. For the most part, it is...
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degree of underpricing, venture-capitalist reputation and underwriter reputation.Abnormal returns and trading volume increase … returns (abnormal volume) and more stringent lock-in contracts.Lock-in contracts and the degree of underpricing are …
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underwriter reputation. We find that high reputation and low reputation underwriters have strong relationships with different sets … of investors. While large institutional investors participate early in IPOs managed by high reputation underwriters, high … net worth investors appear to do the same in IPOs managed by low reputation underwriters. The varying nature of …
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