Wang, Yong; (Tina) Zhang, Xiaotian - In: Value creation in multinational enterprise, (pp. 475-495). 2006
Initial public offering (IPO) underpricing remains a puzzle after decades of investigation. The stock markets in … stock markets experienced much more significant IPO underpricing than most other stock markets in the world. This paper … offers a two-period wealth maximum model to explain the strategic IPO underpricing by state owners. Given the fact that the …