IPOs with buy- And sell-side information production: The dark side of open sales

Review of Financial Studies

Volumn 18, Issue 1, 2005, Pages 327-347

  Yung, Chris ^a,b  

^a UNIVERSITY OF COLORADO   (United States)

^b UNIVERSITY OF COLORADO   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 12344335931     PISSN: 08939454     EISSN: None     Source Type: Journal    
DOI: 10.1093/rfs/hhi004     Document Type: Review

References (28)

1. Back, K., and J. Zender, 2001, "Auctions of Divisible Goods with Endogenous Supply," Economics Letters, 73, 29-34.
2. Benveniste, L., W. Busaba, and W. Wilhelm, 1996, "Price Stabilization as a Bonding Mechanism in New Equity Issues," Journal of Financial Economics, 42, 223-255.
3. Benveniste, L., and P. Spindt, 1989, "How Investment Bankers Determine the Price and Allocation of New Issues," Journal of Financial Economics, 24, 343-361.
4. Brav, A., and P. Gompers, 1997, "Myth or Reality? The Long-Run Underperformance of Initial Public Offering's: Evidence from Venture and Nonventure Capital-Backed Companies," Journal of Finance, 52, 1791-1821.
5. Campbell, T., and W. Kracaw, 1980, "Information Production, Market Signalling, and the Theory of Financial Intermediation," Journal of Finance, 35, 863-882.
6. Chemmanur, T., 1993, "The Pricing of Initial Public Offerings: A Dynamic Model with Information Production," Journal of Finance, 48, 285-304.
7. Chemmanur, T., and P. Fulghieri, 1994, "Investment Bank Reputation, Information Production, and Financial Intermediation," Journal of Finance, 49, 57-79.
8. Chemmanur, T., and H. Liu, 2001, "How Should a Firm Go Public? A Dynamic Model of the Choice Between Fixed-price Offerings and Auctions in IPOS and Privatizations," working paper, Boston College, Boston, MA.
9. Derrien, F., and K. Womack, 2003, "Auctions vs. Bookbuilding and Control of Underprising in Hot Issue Markets," Review of Financial Studies, 16, 31-61.
10. Hauswald, R., and R. Marquez, 2003, "Information Technology and Financial Services Competition," Review of Financial Studies, 16, 921-948.
11. Jenkinson, T., and A. Ljungqvist, 2001, Going Public: The Theory and Evidence on How Companies Raise Equity Finance, Clarendon Press, Oxford.
12. Kaneko, T., and R. Pettway, 1996, "The Effects of Earlier Market Sales and Auctions upon Short-Term IPO Returns: The Case of Japanese IPOs, " Pacific Basin Finance Journal, 4, 241-258.
13. Kaneko, T., and R. Pettway, 2003, "Auctions Versus Bookbuilding of Japanese IPOs," Pacific Basin Journal, 11, 439-462.
14. Klein, B., and K. Leffler, 1981, "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, 81, 615-641.
15. Kutsuna, K., and R. Smith, 2004, "Why Does Book Building Drive Out Auction Methods of IPO Issuance? Evidence from Japan," Review of Financial Studies, 17, 1129-1166.
16. Maksimovic, V., and P. Pichler, 1999, "Private v. Public Offerings: Optimal Selling Mechanisms," working paper, University of Maryland.
17. Matthews, S., 1984, "Information Acquisition in Discriminatory Auctions," in M. Boyer and R. E. Kihlstrom (eds.), Bayesian Models in Economic Theory, North Holland, New York.
18. Milgrom, P., 1979, "Ratinal expectations, Information Acquistition and Competitive Bidding," Econometrica, 49, 921-943.
19. Ritter, J., and I. Welch, 2003, "A Review of IPO Activity, Pricing and Allocations," working paper, University of Florida.
20. Rock, K., 1986, "Why New Issues Are Underpriced," Journal of Financial Economics, 15, 187-212.
21. Shapiro, C., 1983, "Premiums for High Quality Products as Rents to Reputation," Quarterly Journal of Economics, 98, 659-680.
22. Sherman, A., 1992, "The Pricing of Best Efforts New Issues," Journal of Finance, 47, 781-790.
23. Sherman, A., 2000, "IPOs and Long Term Relationships: An Advantage of Book-building," Review of Financial Studies, 13, 697-714.
24. Sherman, A., 2002, "Global Trends in IPO Methods: Book Building vs. Auctions," working paper, University of Notre Dame.
25. Sherman, A., and S. Titman, 2002, "Building the IPO Order Book: Underpricing and Participation Restrictions with Costly Information," Journal of Financial Economics, 65, 3-29.
26. Tirole, J., 1997, The Theory of Industrial Organization, MIT Press, Cambridge, MA.
27. van Bommel, J., 2002, "Messages from Market to Management: The Case of IPOs," Journal of Corporate Finance, 8, 123-138.
28. Wall Street Journal, 2000, "SEC Targets IPO Process with Probes," December 19, 2000, Page C1.