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Using word content analysis on the time-series of IPO prospectuses, we show that issuers tradeoff underpricing and strategic disclosure as potential hedges against litigation risk. This tradeoff explains a significant fraction of the variation in prospectus revision patterns, IPO underpricing,...
Persistent link: https://www.econbiz.de/10010571678
Using word content analysis on the time-series of IPO prospectuses, we find evidence that issuers trade off underpricing and strategic disclosure as potential hedges against litigation risk. This tradeoff explains a significant fraction of the variation in prospectus revision patterns, IPO...
Persistent link: https://www.econbiz.de/10008872028
Persistent link: https://www.econbiz.de/10005477999
Persistent link: https://www.econbiz.de/10005376730
Persistent link: https://www.econbiz.de/10005376781
This study investigates a well-documented enigma in the finance literature, the aftermarket behavior of closed-end fund initial public offerings (IPOs). Many models with rational agents attribute the underpricing of industrial IPOs to information asymmetry between the IPO issues and the...
Persistent link: https://www.econbiz.de/10005794334
Short sale constraints in the aftermarket of initial public offerings (IPOs) are often used to explain short-term underpricing that is subsequently reversed. This paper shows that short selling is integral to aftermarket trading and is higher in IPOs with greater underpricing. Perceived...
Persistent link: https://www.econbiz.de/10008872360
Using word content analysis, we decompose information in the initial public offering prospectus into its standard and informative components. Greater informative content, as a proxy for premarket due diligence, results in more accurate offer prices and less underpricing, because it decreases the...
Persistent link: https://www.econbiz.de/10008680552
This paper examines the decision to go public abroad using a sample of 17,808 IPOs. Although only 6% of initial public offerings are offered abroad, these represent approximately 25% of total IPO proceeds. We find that alleviating informational frictions in order to obtain greater offering...
Persistent link: https://www.econbiz.de/10010702267
type="main" <title type="main">ABSTRACT</title> <p>We examine how product market threats influence firm payout policy and cash holdings. Using firms' product text descriptions, we develop new measures of competitive threats. Our primary measure, product market fluidity, captures changes in rival firms' products relative to...</p>
Persistent link: https://www.econbiz.de/10011032134