IPO. In fixed-price or bookbuilding offerings the issuer might opt to set an offering price that suggests underpricing in … underpricing, which in turn lowers the incentive to produce information about the IPO in the first place. In this paper, we report …

The underpricing of initial public offerings is a well-documented fact of empirical equity market research. Theories … explain this underpricing with market imperfections. We study three empirically relevant IPO mechanisms under almost perfect … report underpricing in each of these IPO mechanisms. Uncertainty about the aftermarket behavior may partly explain IPO excess …

-discriminatory auctions to bookbuilding. We find that bookbuilding leads to significantly higher underpricing than hybrid price …

Concerns about the negative consequences of the excessive underpricing of the current arrangement in the initial public … discovery and the cost of underpricing. The main aim of this paper was to gain new scientific knowledge about this trade-off by … investors to reliably contribute to price discovery. The resulting underpricing (and its variability) of these auctions is …