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Underpricing Of Ipos That Follow Private Placement
dc.contributor.authorCai, Kelly Nianyunen_US
dc.contributor.authorLee, Hei Waien_US
dc.contributor.authorSharma, Viveken_US
dc.date.accessioned2011-11-10T15:40:16Z
dc.date.available2012-11-02T18:56:55Zen_US
dc.date.issued2011-09en_US
dc.identifier.citationCai, Kelly Nianyun; Lee, Hei Wai; Sharma, Vivek (2011). "Underpricing Of Ipos That Follow Private Placement." Journal of Financial Research 34(3). <http://hdl.handle.net/2027.42/87182>en_US
dc.identifier.issn0270-2592en_US
dc.identifier.issn1475-6803en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/87182
dc.description.abstractIn this study we examine the underpricing of initial public offerings (IPOs) by firms that have private placements of equity before their IPOs (PP IPO firms). We find that PP IPOs are associated with significantly less underpricing than their peers. Furthermore, PP IPOs are associated with lower underwriting spreads, more reputable underwriting syndicates, and greater postissue analyst coverage as compared to IPOs that are issued by their industry peers under similar market conditions. Consistent with the implications of the information asymmetry explanation for IPO underpricing, our findings suggest that companies could benefit by conveying their quality via successful pre‐IPO private placements that help reduce the cost of going public.en_US
dc.publisherBlackwell Publishing Incen_US
dc.publisherWiley Periodicals, Inc.en_US
dc.subject.otherG24en_US
dc.subject.otherG32en_US
dc.titleUnderpricing Of Ipos That Follow Private Placementen_US
dc.typeArticleen_US
dc.rights.robotsIndexNoFollowen_US
dc.subject.hlbsecondlevelFinanceen_US
dc.subject.hlbtoplevelBusinessen_US
dc.description.peerreviewedPeer Revieweden_US
dc.contributor.affiliationumUniversity of Michigan–Dearbornen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/87182/1/j.1475-6803.2011.01297.x.pdf
dc.identifier.doi10.1111/j.1475-6803.2011.01297.xen_US
dc.identifier.sourceJournal of Financial Researchen_US
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dc.owningcollnameInterdisciplinary and Peer-Reviewed


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