-star coverage are more likely to be chosen to lead the next VC-backed deal. We find a positive relationship between underpricing and … all-star coverage for Top VCs, but not non-Top VCs. Top VCs tolerate higher levels of underpricing because the information … momentum generated by underpricing allows them to cash out at higher prices when the lockup expires …

top underwriters can amplify their certification effect, reducing IPO underpricing. On the other hand, the rent extraction … incentives of VCs and top underwriters, particularly in a repeated dealing context, can increase underpricing. We test these … contrasting effects on IPO underpricing in the cross-section and around two regulatory shocks. First, VC-backed IPOs, VC …

The phenomenon of underpricing is the subject of many studies on the stock markets, but there is still a research gap … and such an anomaly as underpricing could be a barrier for development of young companies. It means so-called money left … regulations on the European Alternative Investment Markets are correlated with the higher value of underpricing as the …