Garner, Jacqueline L.; Marshall, Beverly B. - In: The Journal of Business 78 (2005) 5, pp. 1837-1858
In this paper, we test Chemmanur and Fulghieri's (1997) predictions regarding a unit IPO firm's choice of signaling mix as a function of firm riskiness. We find evidence that both the proportion of firm value sold as warrants and the percentage of underpricing is increasing in firm riskiness....