An, Heng; Chan, Kam C. - In: Journal of Corporate Finance 14 (2008) 5, pp. 584-595
We examine the effects of credit ratings on IPO pricing. The evidence from U.S. common share IPOs during 1986-2004 shows that when firms go public, those with credit ratings are underpriced significantly less than firms without credit ratings. Credit rating levels, however, do not have a...