haku: @author Faulhaber, G. R. / yhteensä: 6
viite: 4 / 6
| Tekijä: | Allen, F. Faulhaber, G. R. |
| Otsikko: | Signaling by underpricing in the IPO market. |
| Lehti: | Journal of Financial Economics
1989 : AUG, VOL. 23:2, p. 303-323 |
| Asiasana: | NEW ISSUES PRICING |
| Kieli: | eng |
| Tiivistelmä: | Empirical evidence suggests the existence of "hot-issue" markets for initial public offerings: in certain periods and in certain industries, new issues are underpriced and rationing occurs. A model consistent with this observation is developed, which assumes the firm itself best knows its prospestcs. In certain circumstances, firms with the most favourable prospects find it optimal to signal their type by underpricing their initial issue of shares, and investors know that only the best can recoup the cost of this signal from subsequent issues. |
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