Who knows what when? The information content of pre-IPO market prices

Journal of Financial Intermediation

Volumn 14, Issue 4, 2005, Pages 466-484

  Löffler, Gunter ^a   Panther, Patrick F ^b   Theissen, Erik ^c  

^a UNIVERSITY OF ULM   (Germany)

^b GOETHE UNIVERSITY   (Germany)

^c UNIVERSITY OF BONN   (Germany)

Author keywords

Asymmetric information; Information production; Initial public offerings; Underpricing; When issued trading; Winner's curse

Indexed keywords

EID: 27644521996     PISSN: 10429573     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jfi.2004.06.004     Document Type: Article

References (35)

1. R. Aggarwal P. Conroy Price discovery in initial public offerings and the role of the lead underwriter J. Finance 55 2000 2903-2922
2. F. Allen G.R. Faulhaber Signaling by underpricing in the IPO market J. Finan. Econ. 23 1989 303-323
3. Angel, J.J., Brooks, R.M., Mathew, P.G., 1997. When-issued shares, small traders, and the variance of returns around stock-splits. Working paper
4. Aussenegg, W., Pichler, P., Stomper, A., 2002. Sticky prices: IPO pricing on Nasdaq and the Neuer Markt. Working paper
5. D.P. Baron A model of the demand for investment banking advising and distribution services for new issues J. Finance 37 1982 955-976
6. D.P. Baron B. Holmström The investment banking contract for new issues and asymmetric information: Delegation and the incentive problem J. Finance 35 1980 1115-1138
7. C.B. Barry R.H. Jennings The opening price performance of initial public offerings of common stock Finan. Manage. 22 1992 54-63
8. Benveniste, L.M., Fu, H., Seguin, P., Yu, X., 2000. On the anticipation of IPO underpricing: Evidence from equity carve-outs. Working paper
9. L.M. Benveniste P.A. Spindt How investment bankers determine the offer price and allocation of new issues J. Finan. Econ. 24 1989 343-361
10. B. Biais A.M. Faugeron-Crouzet IPO auctions: English, Dutch,... French, and Internet J. Finan. Intermediation 11 2002 9-36
11. Börsenmakler Schnigge AG, 2000. Geschäftsbericht 1999. Düsseldorf
12. M.J. Brennan J. Franks Underpricing, ownership and control in initial public offerings of equity securities in the UK J. Finan. Econ. 45 1997 391-413
13. F. Cornelli D. Goldreich Bookbuilding and strategic allocation J. Finance 56 2001 2337-2369
14. Cornelli, F., Goldreich, D., Ljungqvist, A., 2003. Pre-IPO markets. Working paper
15. Dorn, D., 2003. Does sentiment drive the retail demand for IPOs? Working paper. Columbia University
16. M. Grinblatt C.Y. Hwang Signaling and the pricing of new issues J. Finance 44 1989 393-420
17. K. Hanley The Underpricing of initial public offerings and the partial adjustment phenomenon J. Finan. Econ. 34 1993 231-250
18. P.J. Hughes A.J. Thakor Litigation risk, intermediation, and the underpricing of initial public offerings Rev. Finan. Stud. 5 1992 709-742
19. Jenkinson, T., Jones, H., 2004. Bids and allocations in European bookbuilding. J. Finance. In press
20. Jenkinson, T., Morrison, A.D., Wilhelm, W.J., 2003. Why are European IPOs so rarely priced outside the indicative price range? Working paper. University of Oxford
21. Kukies, J., 2000. The effects of introducing a new stock exchange on the IPO process. Working paper. University of Chicago
22. A. Ljungqvist Pricing initial public offerings: Further evidence from Germany Europ. Econ. Rev. 41 1997 1309-1320
23. A. Ljungqvist T. Jenkinson W.J. Wilhelm Global integration in primary equity markets: The role of US banks and US investors Rev. Finan. Stud. 16 2003 63-99
24. A. Ljungqvist W.J. Wilhelm IPO allocations: Discriminatory or discretionary J. Finan. Econ. 65 2002 167-201
25. A. Ljungqvist W.J. Wilhelm IPO-pricing in the dot-com bubble J. Finance 58 2003 723-752
26. Löffler, G., 2003. Anatomy of a performance race. Working paper. University of Ulm
27. T. Loughran J.R. Ritter Why don't issuers get upset about leaving money on the table in IPOs Rev. Finan. Stud. 15 2002 413-443
28. V. Nanda Y. Yun Reputation and financial intermediation: An empirical investigation of the impact of IPO mispricing on underwriter market value J. Finan. Intermediation 6 1997 39-63
29. J.R. Ritter I. Welch A review of IPO activity, pricing and allocations J. Finance 57 2002 1795-1828
30. K. Rock Why new issues are underpriced J. Finan. Econ. 15 1986 187-212
31. P.H. Schultz M.A. Zaman Aftermarket support and underpricing of initial public offerings J. Finan. Econ. 35 1994 199-219
32. R. Stehle O. Ehrhardt Renditen bei Börseneinführungen am deutschen Kapitalmarkt Z. Betriebswirtschaft 69 1999 1395-1422
33. N.M. Stoughton J. Zechner IPO mechanisms, monitoring, and ownership structure J. Finan. Econ. 49 1998 45-77
34. W. Wasserfallen Ch. Wittleder Pricing initial public offerings: Evidence from Germany Europ. Econ. Rev. 38 1994 1505-1517
35. I. Welch Sequential sales, learning, and cascades J. Finance 47 1989 695-732