Initial public offerings (IPOs) are typically offered at prices lower than the transaction price in the early aftermarket. With a stochastic frontier model, we measured the fair offer price of an IPO and then the deliberate IPO underpricing and the market misvaluation based on the estimated fair...

It has been proven by Ljungqvist and Wilhelm (2002) that constraints on underwriters' allocation discretion reduce price revisions. The dual-tranche bookbuilding in Taiwan and Hong Kong imposes more regulations limiting underwriters than U.S. bookbuilding does, but price revisions of Taiwan and...

It is well known that initial public offerings (IPOs) are typically offered at prices lower than the transaction prices in the early aftermarket. However, the gap between the offer price and the aftermarket transaction price may be attributed to the underpricing of IPOs or the noisy trading...