Zheng, Steven Xiaofan; Li, Mingsheng - In: Journal of Empirical Finance 15 (2008) 3, pp. 436-454
Booth and Chua [Booth J., Chua L. Ownership dispersion, costly information, and IPO underpricing. Journal of Financial Economics 1996; 41; 291-310] hypothesize that IPOs are underpriced to promote ownership dispersion, which in turn increases aftermarket liquidity of IPO stocks. We examine a sample of...