IPO Pricing in “Hot” Market Conditions: Who Leaves Money on the Table?

By F. Derrien. 2005

549 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/200ded8449081caa304a4d39739af63db83790bd

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Citations in the corpus

Institutional versus Individual Investment in IPOs: The Importance of Firm Fundamentals (2009, unknown): “Edwards and Hanley (2008) find that short selling occurs in 95% of their sample of IPOs, and they conclude that IPOs are not as short-sale constrained as has been commonly assumed in the literature (see, e.g., Hanley, Lee, and Seguin (1996), Derrien (2005), and Ljungqvist et al. (2006)).”
A Cross-Disciplinary Exploration of Entrepreneurship Research (2007, background): “Other IPO-related studies seek to understand institutional factors with respect to IPO timing (Benninga, Helmantel, & Sarig, 2005; Gompers, 1996), pricing (Derrien, 2005; Lowry & Shu, 2002), and distribution of funds (Aggarwal, Prabhala, & Puri, 2002; P. M. Lee & Wahal, 2004).”
Individual Investors and Volatility (2011, unknown): “Several papers suggest that the fraction of small trades is a good proxy for retail trading (e.g., Derrien (2005), Barber, Odean and Zhu (2006), and Hvidkjaer (2008)).”
Peer performance and stock market entry (2012, unknown): “…Shleifer and Thaler 1991), retail investor trading (Kumar and Lee 2006; Barber et al. 2009), IPO pricing patterns (Cornelli, Goldreich, and Ljungqvist 2006; Derrien 2005), investment (Baker, Stein, and Wurgler 2003, Polk and Sapienza 2009), and stock return predictability (Baker and Wurgler 2006).”
Do Investors Overweight Personal Experience? Evidence from IPO Subscriptions (2008, methodology): “For example, investors have been shown to participate more after higher industry returns (Derrien, 2005) and participate more in offerings with higher pre-offer publicity (Cook et al., 2006).”
The Effects of Information Disclosure and Board Independence on IPO Discount** (2008, result): “In Europe, and particularly in France, the threat of classaction lawsuits is generally lower, and issuing firms tend to disclose more detailed information in their IPO prospectuses.”
Financial Wealth, Socioemotional Wealth, and IPO Underpricing in Family Firms: A Two-stage Gamble Model (2017, background): “This variable distinguishes the effect of hot versus cold IPO markets by capturing pre-issue excess demand, which indicates higher levels of investor enthusiasm and greater merger and acquisitions activity (Brennan & Franks, 1997; Derrien, 2005; Ljungqvist & Wilhelm, 2003; Ritter, 1984).”
Global trends in IPO methods: Book building versus auctions with endogenous entry (2005, background): “Derrien (2005) models IPO underpricing as being driven by suboptimal regulation that mandates aftermarket price support for all IPOs, in an environment in which price support would not occur voluntarily.”
Financing technology-based small firms in Europe: what do we know? (2012, background): “The role of speculative behaviours in driving abnormal returns has been underlined by Derrien (2005) in a study on the Paris Bourse during the Internet bubble.”
The Effect of Issuer Conservatism on IPO Pricing and Performance (2013, unknown): “Investor sentiment and the extent to which the market is “hot” are popular issues in the initial public offering (IPO) literature (see, for instance, Ritter, 1984, 1991; Helwege and Liang, 2004; Derrien, 2005; Cornelli et al., 2006; Ljungqvis et al., 2006; Bustamante, 2012).”
On the Marketing of IPOs (2006, unknown): “These findings are consistent with the models in Derrien (2005) and Ljungqvist, Nanda, and Singh (2003) and with the evidence in Dorn (2003), Cornelli, Goldreich, and Ljungqvist (2004), and Purnanandam and Swaminathan (2004).”
Auctioned IPOs: The U.S. Evidence (2009, unknown): “Investors’ willingness to participate in IPOs may also increase with stronger IPO market conditions (see Derrien, 2005, and Cornelli, Goldreich and Ljungqvist, 2006) so we include a measure of market conditions in the regressions.”