Underpricing Of Ipos That Follow Private Placement
dc.contributor.author | Cai, Kelly Nianyun | en_US |
dc.contributor.author | Lee, Hei Wai | en_US |
dc.contributor.author | Sharma, Vivek | en_US |
dc.date.accessioned | 2011-11-10T15:40:16Z | |
dc.date.available | 2012-11-02T18:56:55Z | en_US |
dc.date.issued | 2011-09 | en_US |
dc.identifier.citation | Cai, 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.issn | 0270-2592 | en_US |
dc.identifier.issn | 1475-6803 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/87182 | |
dc.description.abstract | In 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.publisher | Blackwell Publishing Inc | en_US |
dc.publisher | Wiley Periodicals, Inc. | en_US |
dc.subject.other | G24 | en_US |
dc.subject.other | G32 | en_US |
dc.title | Underpricing Of Ipos That Follow Private Placement | en_US |
dc.type | Article | en_US |
dc.rights.robots | IndexNoFollow | en_US |
dc.subject.hlbsecondlevel | Finance | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.description.peerreviewed | Peer Reviewed | en_US |
dc.contributor.affiliationum | University of Michigan–Dearborn | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/87182/1/j.1475-6803.2011.01297.x.pdf | |
dc.identifier.doi | 10.1111/j.1475-6803.2011.01297.x | en_US |
dc.identifier.source | Journal of Financial Research | en_US |
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dc.owningcollname | Interdisciplinary and Peer-Reviewed |
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