Download or read book The Coordinating Role of Public Information in Hot Market Ipos written by Jason Draho and published by . This book was released on 2001 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper argues that two features of the new issues market, the quot;rules of the gamequot; for the way bookbuilt IPOs are conducted and the public signals generated by previous IPOs, create incentives for investors that increases the probability that an IPO becomes 'hot'. Intentionally underpricing offerings that attract strong interest makes coordination among investors desirable. A high public signal acts as a coordinating device because investors use it to form beliefs about the beliefs of other investors. An investor believes other investors will submit large buy orders in the IPO, and will choose to buy as well. During a hot market public information can dominate private, and IPOs by firms that produce low private signals can still be successful. The role of public information in coordinating the actions of investors in IPOs provides an explanation for why small changes in market conditions can lead to large volatility in the volume of IPOs. The probability of an IPO becoming hot depends critically on the IPO rules. Reducing intentional underpricing and allocating shares more equitably lowers the incentive to buy and the probability of a hot offering. The bookbuilding method may be more conducive to generating hot markets than alternative IPO mechanisms.

Download or read book Dissertation Abstracts International written by and published by . This book was released on 2003 with total page 506 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pricing and Performance of Initial Public Offerings in the United States written by Arvin Ghosh and published by Routledge. This book was released on 2017-07-05 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this timely volume on newly emerging financial mar- kets and investment strategies, Arvin Ghosh explores the intriguing topic of initial public offerings (IPOs) of securities, among the most significant phenomena in the United States stock markets in recent years. Before the 2000-2001 market turndown, hardly a week went by when more than a few companies did not become public, either in the organized stock exchange or in the Over the Counter (OTC) market. In the often over-burdened, technology-heavy Nasdaq market, the role of IPOs was crucial for the market's new vigor and growth. Internet stocks were able to find a mode to supply key momentum to the market. In the so-called "New Economy" of the 1990s, it was the seductively accessible IPO that ushered in the world's information technology revolution.Ghosh sets out to examine the pricing and financial performance of IPOs in the United States during the period 1990-2001. In the opening chapter he discusses the rise and fall of IPOs in the preceding decade. Chapter 2 further delineates the IPO process from the start of the prospectus to the end of the "quiet period" and aftermarket stabilization. In chapter 3 Ghosh analyzes the mispricing and deliberately deceptive underpricing, or "flipping," of Internet IPOs. Chapter 4 delves deeper into the pricing and operating efficiency of Nasdaq IPOs. Chapter 5 analyzes the pricing and long-run performance of IPOs both in the New York Stock Exchange and in the Nasdaq markets. In chapters 6 and 7 the author deals with the pricing and performance of the venture-blocked and nonventure-backed IPOs in general and Internet IPOs in particular. In chapter 8 he analyzes the role of underwriters as market makers. In chapter 9 Ghosh discusses the accuracy of analysts' earnings forecasts. In the concluding chapter, he summarizes the principal findings of the study and the recent revival of the IPO market and its place in capital formation as well as the latest developments in t

Download or read book Handbook of Research on IPOs written by Mario Levis and published by Edward Elgar Publishing. This book was released on 2013-11-29 with total page 599 pages. Available in PDF, EPUB and Kindle. Book excerpt: The chapters offer some important new insights into issues that will be of interest not only to the academic community but also to professionals involved in the preparation, structure and execution of such transactions, market regulators, and private a

Download or read book The IPO Decision written by Jason Draho and published by Edward Elgar Publishing. This book was released on 2004-01-01 with total page 400 pages. Available in PDF, EPUB and Kindle. Book excerpt: Annotation Initial public offerings (IPOs) garnered unprecedented positive attention in the 1990s for their spectacular returns and central role in entrepreneurial activity. Subsequent revelations of unscrupulous IPO allocation and promotion practices cast a less fa.

Download or read book Initial Public Offerings Findings and Theories written by Seth Anderson and published by Springer Science & Business Media. This book was released on 1995-10-31 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: Initial public offerings (IPOs) play a crucial role in allocating resources in market economies. Because of the enormous importance of IPOs, an understanding of how IPOs work is fundamental to an understanding of financial markets generally. Of particular interest is the puzzling existence of high initial returns to equity IPOs in the United States and other free-market economies. Audience: Designed for use by anyone wishing to perform further academic research in the area of IPOs and by those practitioners interested in IPOs as investment vehicles.

Download or read book IPOs and Equity Offerings written by Ross Geddes and published by Elsevier. This book was released on 2003-06-06 with total page 273 pages. Available in PDF, EPUB and Kindle. Book excerpt: An initial public offering (IPO) is one of the most significant events in corporate life. It follows months, even years of preparation. During the boom years of the late 1990s bull market, IPOs of growth companies captured the imagination and pocketbooks of investors like never before. This book goes behind the scenes to examine the process of an offering from the decision to go public to the procedures of a subsequent equity offering. The book is written from the perspective of an experienced investment banker describing the hows and whys of IPOs and subsequent equity issues. Each aspect of an IPO is illustrated with plenty of international examples pitched alongside relevant academic research to offer a combination of theoretical rigour and practical application. Topics covered are: - the decision to go public- legal and regulatory aspects of an offering; marketing and research- valuation and pricing- allocations of shares to investors - examination of fees and commissions * Global perpective: UK, European and US practices, regulations and examples, and case studies* First hand experience written by an IPO trader with academic rigour* Includes the changes in the market that resulted from 1998-2000 equity boom

Download or read book Does the Effect of Revealed Private Information on Initial Public Offering IPO First Trading Day Return Differ by IPO Market Heat written by Michael O'Connor Keefe and published by . This book was released on 2014 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: By IPO market regime, I decompose the effect of revealed private information on the initial return of IPOs (Initial Public Offerings) into adjusted and unadjusted private information and find: (i) investment banks partially adjust the offer price in return for revealed private information in all but the non-hot IPO market; (ii) the economic importance of private information associated with IPOs (and hence agency costs) is procyclical; and (iii) industry information spillovers between IPOs occur only in the hot and very-hot IPO markets.

Download or read book Issues in IPO Valuations written by Heather Nicole Rhodes and published by . This book was released on 2014 with total page 203 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation focuses on the effect of regulation and asymmetric information problems in the market for initial public offerings (IPOs). It consists of three essays that evaluate different aspects of the impact of regulation and asymmetric information problems on IPO valuations and pricing. The first essay retests the signaling and agency theories with a matched-sample of IPOs prior to and following the passage of the Sarbanes-Oxley Act of 2002 (SOX). Because the wealth effect could affect the results of these tests, it is also evaluated. The study is motivated by the potential impact of SOX-related governance and reporting requirements on the relative importance of adverse selection and moral hazard problems, with which the signaling and agency theories are respectively concerned, in the market for IPOs. Additionally, SOX may have affected the types of firms going public and ultimately the relative importance of adverse selection and moral hazard. Results on both the pre- and post-SOX samples are consistent with the signaling theory and evidence of a wealth effect exists in both eras, although it is more significant post-SOX. However, in contrast to results of studies conducted prior to SOX, both the pre- and post-SOX results give little credence to the agency theory, suggesting that SOX has not impacted investors' concerns regarding moral hazard. Rather, the difference between the pre-SOX results and the results of other studies conducted prior to SOX suggests that SOX appeared to reduce moral hazard concerns only through its effect on the self-selection of firms going public. The second essay utilizes a matched sample of IPOs prior to the passage of SOX and those issued after the passage of the Act to examine the role of the board structure provisions of the Act on firm value as well as the Act's general valuation consequences. We provide evidence that SOX has negatively impacted the IPO market by suppressing the number of yearly issuances, particularly deterring small issuers from entering public equity markets, and imposing binding constraints on board structure through the new exchange listing requirements. We document not only that firms going public post-SOX are much different than those going public pre-SOX, but also in matched sample comparisons, the Act does not appear to provide any valuation benefit. In particular, compliance with the board structure provisions provides no benefit and a post-SOX dummy is negative for some valuation measures. SOX thus appears to have imposed costs that prohibit many small firms from issuing IPOs, without a corresponding benefit for those that do issue. The third essay analyzes the relationship between the supply of institutional investor capital and IPO pricing. It is motivated by the recent literature documenting the importance of institutional investment to the cost of raising equity capital and the tendency of professional money managers to mimic one another's trades. I propose that institutional investment in an industry may influence the pricing of initial public offerings through the effects of competition on the pricing process, particularly by affecting the Benveniste and Spindt (1989) partial adjustment process. I hypothesize that the level and concentration in institutional investment in an industry in which an issuer operates serves as a proxy for the competitiveness of the supply of capital in that industry, and that relatively higher levels of competition reduce the need for partial adjustment. Additionally, in more competitive markets, offer price updates should be larger and initial returns should be relatively lower. The results suggest support for these hypotheses. In more competitive markets, there is less partial adjustment, offer price revisions are larger and initial returns are lower. The results on partial adjustment and offer price revisions are robust to controlling for endogeneity issues, while the results on initial returns are substantially weaker once endogeneity is addressed.

Download or read book Initial Public Offerings IPO written by Greg N. Gregoriou and published by Elsevier. This book was released on 2011-04-01 with total page 463 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the cooling off of IPOs since the dot com bubble, Google has rekindled the fire for IPOs. This IPO reader contains new articles exclusive to this reader by leading academics from around the world dealing with quantitative and qualitative analyses of this increasingly popular and important area of finance. Articles address new methods of IPO performance, international IPOs, IPO evaluation, IPO underwriting, evaluation and bookbuilding. Although numerous articles are technical in nature, with econometric and statistical models, particular attention has been directed towards the understanding and the applicability of the results as well as theoretical development in this area. This reader will assist researchers, academics, and graduate students to further understand the latest research on IPOs. *Interest in IPOs is increasing again after the Google IPO, and IPOs are up significantly from last year *Chapters by well known academics provide an international perspective, describing research results from IPO data in countries spanning the globe *Research is based on real results from IPO data collected over the past 5-7 years

Download or read book A Theory of IPO Waves written by Ping He and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In the IPO market, investors coordinate on acceptable IPO price based on the performance of past IPOs, and this generates an incentive for investment banks to produce information about IPO firms. In hot periods, the information produced by investment banks improves the quality of IPO firms, and this allows ex ante low quality firms to go public and increases the secondary market price, thus synchronizing high IPO volumes and high first day returns. When investment banks behave asymmetrically in information production, the ldquo;reputationsrdquo; of investment banks are interpreted as a form of market segmentation to economize on the social cost of information production.

Download or read book The Oxford Handbook of Entrepreneurial Finance written by Douglas Cumming and published by OUP USA. This book was released on 2012-03-22 with total page 937 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.

Download or read book Initial Public Offerings written by Michelle Lowry and published by . This book was released on 2017 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this monograph is to provide an overview of the IPO literature since 2000. The fewer numbers of companies going public in recent years has raised many questions regarding the IPO process, in both academic and regulatory circles. As we all strive to understand these changes in the market, it is especially important to understand the dynamics underlying the IPO process. If the process of going public is too costly or the IPO mechanism is plagued by too many conflicts of interest among the various intermediaries, then private companies may rationally choose other methods of raising capital. In a related vein, it is imperative that new regulations not be based on research focusing solely on large, more mature firms. Newly public firms have unique characteristics, and an increased understanding of such issues will contribute positively to well-functioning public markets and further growth of the entrepreneurial sector. We also provide a detailed guide to researchers on how to obtain a research-quality sample of IPOs, from standard data sources. Related to this, we tabulate important corrections to these standard data sources.

Download or read book The Oxford Handbook of IPOs written by Douglas Cumming and published by . This book was released on 2018 with total page 841 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive analysis of IPOs. The chapters cover the latest information on a range of fundamental questions, including: How are IPOs regulated? How are IPOs valued? How well does an IPO perform in the short and long run, and what are the drivers of performance?

Download or read book Evidence of Information Spillovers in the Production of Investment Banking Services written by Lawrence M. Benveniste and published by . This book was released on 2001 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Going Public Handbook written by Harold S. Bloomenthal and published by . This book was released on 2008 with total page 2150 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Case Research Journal written by and published by . This book was released on 2003 with total page 686 pages. Available in PDF, EPUB and Kindle. Book excerpt: