Habib, Michel A; Ljungqvist, Alexander P - In: Review of Financial Studies 14 (2001) 2, pp. 433-58
We model owners as solving a multidimensional problem when taking their firms public. Owners can affect the level of underpricing through the choices they make in promoting an issue, such as which underwriter to hire or on what exchange to list. The benefits of reducing underpricing in this way...