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We explain why initial underpricing of new issue exists globally and is not arbitraged away in an efficient market. We … argue that initial underpricing is a natural by-product of liquidity-motivated ownership dispersion requirements and … initial underpricing. We predict that as the level of divergence of opinion about an issue increases, underpricing will …
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This paper examines the impact of expected skewness on IPO underpricing based on a comprehensive set of 17,051 IPOs …
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