Philip Radner analyzes equity financing phenomena and researches IPO underpricing and SEO announcement effects using data sets for US REITs. Moreover, he discusses underpricing theories and their applicability in the REIT context and gives a theoretical background on IPOs and on underpricing in...

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 reexamines this hypothesis for IPO samples in the different...