We develop a measure of the expected net wealth gains of pre-IPO shareholders to explain the decision-making process of IPO issuers in selecting an underwriting method. Using unique Taiwanese IPO features, this investigation tests whether the underwriters control the issue method choice (the...

We examine the long run stock performance of IPO firms following lockup expiration when insiders are allowed to release their shares from the perspectives of two hypotheses. The portfolio diversification hypothesis notes that corporate insiders may wish to diversify their portfolios and sell...

Sections 20 and 32 of the 1933 Glass-Steagall Act address a potential conflict of interest by banning commercial banks from the market for corporate securities underwriting. This restriction was officially rescinded in 1999 by the Gramm-Leach-Bliley Financial Modernization Act. In turn, this...