We analyse a regulatory change in the Japanese IPO market that created an abrupt shift from hybrid price …-discriminatory auctions to bookbuilding. We find that bookbuilding leads to significantly higher underpricing than hybrid price …-discriminatory auctions. Further, we find evidence that price accuracy tends to be higher for auctions than for bookbuilding. The results hold …

This paper examines the impact of first price revision that reflects institutional investors' demand on subsequent … price formation in initial public offerings (IPOs). Unique setting of the Japanese IPO process allows retail investors to … building of the order book. We provide several interesting findings. First, the results show that first price revision …

We examine the price discovery process of initial public offerings (IPOs) from the offer price to the first day’s open … price. Stock exchanges have made major changes to the IPO preopening process, and introduced an open auction process in … which all investors are able to enter orders and participate in price discovery. The time spent in preopening has increased …