This paper examines the impact of cultural distance on the underpricing of initial public offerings issued by foreign firms in the United States (foreign IPOs). Using a sample of 503 foreign IPOs from 27 countries for the 1980–2012 period, we find that greater cultural differences between U.S....

We examine price pressure in a setting where trades occur because of regulations and when information effects are absent. Our study of fallen angel bond sales by insurance companies shows that price pressure is negligible, if not non-existent. We attribute our results to the fact that the trades...

We examine aggregate volume of straight debt IPOs issued by nonfinancial firms over an extended period of 1970 to 2010. We find that aggregate debt IPO activities display wave patterns. Similar to equity IPOs, both the number and total proceeds of debt IPOs vary substantially over time. We...

This paper examines underpricing of IPOs and seasoned offerings in the corporate bond market. We investigate whether underpricing represents a solution to an information problem or a liquidity problem. We find that underpricing occurs with both IPOs and seasoned offering and is highest among...

This study addresses the question of the effectiveness of private placements in mitigating the information asymmetry problem faced by IPO firms, and their impacts on issuing costs, both underpricing and underwriting spreads, of IPOs. We examine the underpricing of initial public offerings by...

This paper examines the role of reputation in the corporate bond market as a substitute for underpricing. We find that underpricing occurs with seasoned debt issuers as well as debt IPOs and it is highest among riskier, unknown firms. In addition, firms with no prior banking elationship have...

This paper examines underpricing of IPOs and seasoned offerings in the corporate bond market. We investigate whether underpricing represents a solution to an information problem or a liquidity problem. We find that underpricing occurs with both IPOs and seasoned offering and is highest among...

We examine price pressure in a setting where trades occur because of regulations. Our study of fallen angel bond sales by insurance companies shows that price pressure is not significantly different from zero when information effects are absent. Our results confirm the prediction of several...