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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 particular. With this background at hand, the results out of …
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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 … underpricing does deter traditional IPO cases more compared to that effect in the pre-1995 period. In the period after that …
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