We use a sample of JASDAQ IPOs to study the effects of public information on offer price formation, initial returns, and long-run returns. Underwriters begin reporting anticipated offer prices of Japanese IPOs at an earlier point than in the US. The observable portion of the price formation...

The price formation process of JASDAQ IPOs is more transparent than in the United States. The transparency facilitates analysis of important issues in the IPO literature-why offer prices only partially adjust to public information and adjust more fully to negative information, and why...

Until October 1997, firms wishing to go public in Japan were required to use a hybrid auction process where up to half of the issue (the quot;auction tranchequot;) was offered to investors via a discriminatory auction. Remaining shares (the quot;public offer tranchequot;) were sold a few days...

In 1997, Japan introduced a US-style book-building method of IPO pricing as an alternative to an open-market auction method that had been required since 1989. Shortly after its authorization, all IPOs in Japan were priced by book-building. The shift occurred despite economic arguments and...

We provide evidence that bears on the impact of deregulation that removes impediments to integration of investment banking and commercial banking functions. At issue is whether close relationships between commercial banks and investment banks give rise to conflicts of interest and enhanced...

We examine Japan's 1997 introduction of book building as an alternative to an auction method of IPO issuance that had been required since 1989. Despite its higher total issue cost for some issuers, all issuers in Japan now select book building. In contrast to auctioning, book building enables...

We use a sample of JASDAQ IPOs to study the effects of public information on offer price formation, initial returns, and long-run returns. Underwriters begin reporting anticipated offer prices of Japanese IPOs at an earlier point than in the US. The observable portion of the price formation...