A start of a modern-era financial innovation on capital and financial markets is usually dated around the 1970s. Drawing on two broad assumptions that (i) capital markets are important and (ii) hybrid securities are an important part of capital markets, since hybrid issues exist and continue...

This paper examines whether investors use information contained in the prospectus as indicators of firm quality and incorporate this information when pricing an IPO firm, and then it relates these IPO valuations to post-IPO returns. The study is based on a sample of IPO firms that went public on...