This paper investigates how underwriters set the IPO firm’s fair value, an ex-ante estimate of the market value, using a unique dataset of 228 reports from French underwriters. These reports are issued before the IPO shares start trading on the stock market and detail how underwriters...

This paper examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on financial analysts' ability to translate accounting information into forward looking information. In particular, we investigate whether the switch to IFRS has an impact on (1) the...

Using a comprehensive database of firms from 21 European countries over the period 1998–2008, we find that venture capital investment has a positive effect on the rate of new business creation. This is especially true in countries with higher entry costs, higher protection of intellectual...

This paper examines the broad-based grant of employee stock options (ESOs) in the period following the Initial Public Offering (IPO). Stock option grants are used to reduce the negative effects of conflicts of interests associated with a firm's going public. The study documents that option...