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The signaling hypothesis suggests that firms have incentives to underprice their initial public offerings (IPOs) to signal their quality to the outside investors and to issue seasoned equity (SEO) at more favorable terms. While the initial empirical evidence on the signaling hypothesis was weak,...
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Abstract: Im Mittelpunkt des Werkes steht die Suche nach einer angemessenen Erklärung des Underpricing von … begrenzt.Ein Weg, das vorhandene Theoriegebäude zum Verständnis des Underpricing auszubauen, liegt in der Ergänzung der … bestehenden Interpretationen des Underpricing additiv um eine kausalprozessbezogene Betrachtung entsprechend den Ideen der …
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-discriminatory auctions to bookbuilding. We find that bookbuilding leads to significantly higher underpricing than hybrid price …
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This paper provides an economic model resulting in two distinct marketing strategies available to investment bankers. First, we hypothesize that an increased selling effort by brokers is used most effectively when the investment clientele is uninformed. Second, adjusting the offer price of the...
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