A Theory of IPO Waves
Ping He
The Review of Financial Studies, 2007, vol. 20, issue 4, 983-1020
Abstract:
In the IPO market, investors coordinate on acceptable IPO price based on the performance of past IPOs, and this generates an incentive for investment banks to produce information about IPO firms. In hot periods, the information produced by investment banks improves the quality of IPO firms, and this allows ex ante low quality firms to go public and increases the secondary market price, thus synchronizing high IPO volumes and high first day returns. When investment banks behave asymmetrically in information production, the “reputations” of investment banks are interpreted as a form of market segmentation to economize on the social cost of information production. , Oxford University Press.
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
http://hdl.handle.net/10.1093/rfs/hhm004 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:rfinst:v:20:y:2007:i:4:p:983-1020
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
The Review of Financial Studies is currently edited by Itay Goldstein
More articles in The Review of Financial Studies from Society for Financial Studies Oxford University Press, Journals Department, 2001 Evans Road, Cary, NC 27513 USA.. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().