Kim, Jaemin; Pukthuanthong‐Le, Kuntara; Walker, Thomas - In: Management Decision 46 (2008) 1, pp. 106-130
revisions, and under‐pricing. Findings – It is found that debt only serves as a signal of better firm quality for low‐tech IPOs …‐IPO leverage serves as a positive signal of firm quality as it forces a firm's managers to adhere to tough budget constraints. The …, as reflected in smaller price revisions and lower under‐pricing. For high‐tech IPOs, the effect of leverage is reversed …