offering (IPO) market for the provision of entrepreneurial finance-book building-have led to research into the viability of … auctions for IPO pricing and allocation. IPO firms face a trade-off between the benefit of accurate and reliable IPO price … measuring the impact of two key variables on this trade-off: capacity restraint and discount on the auction clearing price …

institutional investors in 715 auctioned IPOs between 2009 and 2012 in China, where an IPO auction is first conducted among … bidding information from the IPO auction has predictive power for IPO initial returns and for long-run post-IPO stock returns … IPO share allocations in better performing IPOs, with institutions able to produce more precise information receiving …

We study how institutional investors utilize potentially biased information by analyzing the effect of IPO underwriters …' earnings forecasts on investors' bidding behaviors in Chinese IPO auctions. Despite the presence of upward biases in … information about the IPO but has a biased incentive in presenting the information to investors. Consistent with the model …