Lam, Swee-Sum; Tan, Ruth Seow-Kuan; Wee, Glenn Tsao-Min - In: Journal of Financial and Quantitative Analysis 42 (2007) 02, pp. 313-337
Policy risk, rather than information asymmetry, explains the cross-sectional underpricing of privatized initial public offerings. The issuer governments of high policy risk issues tend to retain a large equity stake and underprice more with underpricing increasing in retained equity. While the...