search query: @author Shaw, W. / total: 8
reference: 7 / 8
| Author: | Michaely, R. Shaw, W. |
| Title: | The pricing of initial public offerings: tests of adverse-selection and signalling theories |
| Journal: | Review of Financial Studies
1994 : SUMMER, VOL. 7:2, p. 279-319 |
| Index terms: | PRICING TESTS ADVERSE SELECTION |
| Language: | eng |
| Abstract: | The authors test the empirical implications of several models of IPO underpricing. Consistent with the winner's-curse hypothesis, they show that in markets where investors know a priori that they do not have to compete with informed investors, IPOs are not underpriced. They also show that IPOs underwritten by reputable investment banks experience significantly less underpricing and perform ignificantly better in the long run. The authors do not find empirical support for the signaling models that try to explain why firms underprice. |
SCIMA