IPO underpricing and international corporate governance

Journal of International Business Studies

Volumn 41, Issue 2, 2010, Pages 206-222

  Boulton, Thomas J ^a   Smart, Scott B ^b   Zutter, Chad J ^c  

^a MIAMI UNIVERSITY   (United States)

^b INDIANA UNIVERSITY   (United States)

^c UNIVERSITY OF PITTSBURGH   (United States)

Author keywords

Event study; Initial public offerings (IPOs); Legal origin; Multiple regression analysis; Political economy

Indexed keywords

EID: 76849090444     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/jibs.2009.38     Document Type: Article

References (51)

1. Barth, J. R., Caprio, G., & Levine, R. 2006. Rethinking bank regulation: Till angels govern. New York: Cambridge University Press.
2. Beatty, R. P., & Ritter, J. R. 1986. Investment banking, reputation, and the underpricing of initial public offerings. Journal of Financial Economics, 15(1-2): 213-232.
3. Beck, T., Demirgüç-Kunt, A., & Levine, R. 2000. A new database on the structure and development of the financial sector. World Bank Economic Review, 14(3): 597-605.
4. Bhattacharya, U., & Daouk, H. 2002. The world price of insider trading. Journal of Finance, 57(1): 75-108.
5. Booth, J., & Chua, L. 1996. Ownership dispersion, costly information, and IPO underpricing. Journal of Financial Economics, 41(2): 291-310.
6. Bradley, D. J., Cooney, J. W., Jordan, B. D., & Singh, A. K. 2004. Negotiation and the IPO offer price: A comparison of integer vs non-integer IPOs. Journal of Financial and Quantitative Analysis, 39(3): 517-540.
7. Brau, J. C., & Fawcett, S. E. 2006. Initial public offerings: An analysis of theory and practice. Journal of Finance, 61(1): 399-436.
8. Brennan, M. J., & Franks, J. R. 1997. Underpricing, ownership and control in initial public offerings of equity securities in the UK. Journal of Financial Economics, 45(3): 391-413.
9. Bryan, S., Nash, R., & Patel, A. 2006. The structure of executive compensation: International evidence from 1996-2004, Unpublished working paper, Wake Forest University.
10. Butler, A. W., & Fauver, L. 2006. Institutional environment and sovereign credit ratings. Financial Management, 35(3): 53-79.
11. Carter, R. B., & Manaster, S. 1990. Initial public offerings and underwriter reputation. Journal of Finance, 45(4): 1045-1067.
12. Cornelli, F., & Goldreich, D. 2001. Bookbuilding and strategic allocation. Journal of Finance, 56(6): 2337-2369.
13. Dewenter, K. L., & Malatesta, P. H. 1997. Public offerings of state-owned and privately owned enterprises: An international comparison. Journal of Finance, 52(4): 1659-1679.
14. Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 2008. The law and economics of self-dealing. Journal of Financial Economics, 88(3): 430-465.
15. Doidge, C. 2004. US cross-listings and the private benefits of control: Evidence from dual-class firms. Journal of Financial Economics, 72(3): 519-553.
16. Doidge, C., Karolyi, A., & Stulz, R. 2007. Why do countries matter so much for corporate governance? Journal of Financial Economics, 86(1): 1-39.
17. Dyck, A., & Zingales, L. 2004. Private benefits of control: An international comparison. Journal of Finance, 59(2): 537-600.
18. Ellul, A., & Pagano, M. 2006. IPO underpricing and after-market liquidity. Review of Financial Studies, 19(2): 381-421.
19. Field, L. C., & Karpoff, J. M. 2002. Takeover defenses of IPO firms. Journal of Finance, 57(5): 1857-1889.
20. Field, L. C., & Sheehan, D. P. 2004. IPO underpricing and outside blockholdings. Journal of Corporate Finance, 10(2): 263-280.
21. Jenkinson, T., & Mayer, C. 1988. The privatisation process in France and the UK. European Economic Review, 32(2-3): 482-490.
22. Kaufmann, D., Kraay, A., & Mastruzzi, M. 2004. Governance matters III: Governance indicators for 1996, 1998, 2000, and 2002. World Bank Economic Review, 18(2): 253-287.
23. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 1999. Corporate ownership around the world. Journal of Finance, 54(2): 471-517.
24. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 2006. What works in securities laws? Journal of Finance, 61(1): 1-32.
25. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. 1997. Legal determinants of external finance. Journal of Finance, 52(3): 1131-1150.
26. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. 1998. Law and finance. Journal of Political Economy, 106(6): 1131-1155.
27. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. 2000a. Agency problems and dividend policies around the world. Journal of Finance, 55(1): 1-33.
28. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. 2000b. Investor protection and corporate governance. Journal of Financial Economics, 58(1-2): 3-27.
29. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. 2002. Investor protection and corporate valuation. Journal of Finance, 57(3): 1147-1170.
30. Li, X., & Masulis, R. W. 2008. How do venture investments by different classes of financial institutions affect the equity underwriting process? Unpublished working paper, Vanderbilt University.
31. Ljungqvist, A. P., Jenkinson, T., & Wilhelm Jr, W. J. 2003. Global integration in primary equity markets: The role of US banks and US investors. Review of Financial Studies, 16(1): 63-99. (Pubitemid 37496160)
32. Loughran, T., & Ritter, J. R. 2004. Why has IPO underpricing changed over time? Financial Management, 33(3): 5-37.
33. Loughran, T., Ritter, J. R., & Rydqvist, K. 1994. Initial public offerings: International insights. Pacific Basin Journal, 2(2-3): 165-199.
34. Marshall, M. G., & Jaggers, K. 2000. Polity IV project, political regime characteristics and transitions, 1800-2000, Center for International Development and Conflict Management, University of Maryland.
35. Mauer, D. C., & Senbet, L. W. 1992. The effect of the secondary market on the pricing of initial public offerings: Theory and evidence. Journal of Financial and Quantitative Analysis, 27(1): 55-79.
36. Megginson, W. L., & Weiss, K. A. 1991. Venture capitalist certification in initial public offerings. Journal of Finance, 46(3): 879-903.
37. Mello, A. S., & Parsons, J. E. 1998. Going public and the ownership structure of the firm. Journal of Financial Economics, 49(1): 79-109.
38. Miller, D. 1999. The market reaction to international crosslistings: Evidence from depositary receipts. Journal of Financial Economics, 51(1): 103-123.
39. Muscarella, C., & Vetsuypens, M. 1989. The underpricing of second initial public offerings. Journal of Financial Research, 12(3): 183-192.
40. Perotti, E. C., & Guney, S. E. 1993. The structure of privatisation plans. Financial Management, 22(1): 84-98.
41. Political Risk Services. 1996. International country risk guide. East Syracuse, NY: Political Risk Services.
42. Ritter, J. R. 1984. The 'hot issue' market of 1980. Journal of Business, 57(2): 215-240.
43. Ritter, J. R. 1987. The costs of going public. Journal of Financial Economics, 19(2): 269-281.
44. Rock, K. 1986. Why new issues are underpriced. Journal of Financial Economics, 15(1-2): 187-212.
45. Schenone, C. 2005. The effect of banking relationships on the firm's IPO underpricing. Journal of Finance, 59(6): 2903-2958.
46. Sherman, A. E. 2005. Global trends in IPO methods: Book building versus auctions with endogenous entry. Journal of Financial Economics, 78(3): 615-649.
47. Smart, S. B., & Zutter, C. J. 2003. Control as a motivation for underpricing: A comparison of dual and single-class IPOs. Journal of Financial Economics, 69(1): 85-110.
48. Smart, S. B., Thirumalai, R. S., & Zutter, C. J. 2008. What's in a vote? The short- and long-run impact of dual-class equity on IPO firm values. Journal of Accounting and Economics, 45(1): 94-115.
49. Weitzel, U., & Berns, S. 2006. Cross-border takeovers, corruption, and related aspects of governance. Journal of International Business Studies, 37(6): 786-806.
50. Welch, I. 1989. Seasoned offerings, imitation costs, and the underpricing of initial public offerings. Journal of Finance, 44(2): 421-449.
51. Zingales, L. 1995. Insider ownership and the decision to go public. Review of Economic Studies, 62(212): 425-448.