Zhu, Yun - In: Financial management 38 (2009) 2, pp. 323-355
The litigation risk hypothesis of IPO underpricing posits that issuers underprice IPOs in an effort to avoid costly … litigation and that underpricing should be greater for issuers with ex-ante higher levels of litigation risk. This paper … underpricing does deter traditional IPO cases more compared to that effect in the pre-1995 period. In the period after that …
