The present study's major objective consists in providing an empirical examination of the effect of the information asymmetry variables on the IPOs underpricing on the French market, based on the agency theory. The results have shown that the securities' underpricing can be explained by...

This study examines the initial price performance of family and non-family controlled IPO firms listed on the Australian Securities Exchange (ASX) between 1988 and 1999. Ownership and control are significant factors that influence managerial incentives, whereas the dynamics underlying family...

The empirical findings of this paper suggest that IPOs in the Chinese stock market were deliberately, substantially underpriced by the issuers rather than overpriced by the aftermarket. We propose that the Chinese government has deliberately underpriced the IPOs primarily to create a viable...

This paper demonstrates how mezzanine financing can be used to minimise the weighted average cost of capital for a second stage growth firm waiting to obtain equity capital from an IPO. A model is provided that allows entrepreneurs to fit their available mezzanine financing cost structure to a...

This paper examines the impact of venture-capital backing of UK companies issuing shares at flotation on the characteristics of the lock-in agreements entered into by the existing shareholders, and on the abnormal returns realised around the expiry of the directors' lock-in agreements.The study...

We analyse the characteristics of lockup agreements of IPOs on the Neuer Markt and the Nouveau Marche from 1996 to 2000.Even though both markets were part of the same EuroNM network, the characteristics of their lockup agreements are substantially different.Firm characteristics have a major...

We usually assume increases in supply, allocation by rationing, and exclusion of potential buyers will never raise prices. But all of these activities raise the expected price in an important set of cases when common-value assets are sold. Furthermore, when we make the assumptions needed to rule...

In this research we test the generalizability of an existing model for classifying information-intensive services that can be globally disaggregated to Internet services. This categorization allows us to judge which types of Internet Initial Public Offerings (IPOs) are likely to have superior...

Initial public offerings and acquisitions are decisive and unique events in a firm’s life cycle. Motivations of private firms for going public have been broadly examined in recent decades and for a variety of reasons, the firm’s short-term takeover strategy has been observed as an important...

From 1998 to 2001, the high-tech industry saw a dramatic increase and subsequent sharp decline in market capitalisation during a phenomenon known as the dot-com bubble. During this time there were a large number of private companies that made the decision to go public via an Initial Public...