The paper examines the determinants of stabilization and its impact on the aftermarket prices. We use a unique dataset to relax several assumptions in the stabilization literature. We find that underwriters support IPO prices shortly after listing, particularly in cold markets and when demand is...

This paper examines the impact of incentive fees in mitigating conflicts of interest between the IPO firms and their underwriters. Consistent with cost minimisation hypothesis, our results show that granting incentive fees to underwriters results in lower listing costs and high IPO proceeds. We...