Litigation Risk and IPO Underpricing

By Michelle René Lowry, Susan Shu. 2002

490 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/b188f6a09ebf28fda9cc316aaeb6d53c59d52bf8

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Citations in the corpus

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).”
IPO Research in Management and Entrepreneurship: Moving the Agenda Forward (2009, background): “The three primary theoretical explanations for underpriced offerings are information asymmetry (Beatty & Ritter, 1986; Loughran & Ritter, 2004; Ritter & Welch, 2002), signaling (Anderson, Beard, & Born, 1995; Ritter, 1998), and litigation risk (Lowry & Shu, 2002; Tinic, 1988).”
Financial Wealth, Socioemotional Wealth, and IPO Underpricing in Family Firms: A Two-stage Gamble Model (2017, background): “Second, higher IPO underpricing can reduce the likelihood of post-IPO lawsuits and potential litigation costs (Lowry & Shu, 2002), which could cause reputational damage for the family and jeopardize the identity linkages between the family and the firm (Deephouse & Jaskiewicz, 2013; Zellweger,…”
Do Auctions Induce a Winner's Curse? New Evidence from the Corporate Takeover Market (2008, background): “Lowry and Shu (2002), Officer (2003), and Smith (1987) also use simultaneous equations analysis in related applications.”
The Effects of Securities Class Action Litigation on Corporate Liquidity and Investment Policy (2015, unknown): “The approach we employ is similar to that adopted by Lowry and Shu (2002), who examine the impact of litigation risk on IPO underpricing.”
Firm Litigation Risk and the Insurance Value of Corporate Social Performance (2013, background): “Lowry and Shu (2002) studied lawsuits related to the underpricing of initial public offerings (IPOs) in the U.S. and found that the settlement payments, one of the most publicized costs of litigation, averaged $3.3 million and represented 11 percent of the total proceeds raised.”
The Effect of Issuer Conservatism on IPO Pricing and Performance (2013, unknown): “…model is estimated to determine if issuer conservatism is related to post-IPO industry-adjusted ROA: (4) 7 Alternatively, the stronger relation between conservatism and underpricing for technology IPOs also appears to be consistent with the “insurance effect” described by Lowry and Shu (2002).”
Seasoned Equity Offerings: Quality of Accounting Information and Expected Flotation Costs (2009, unknown): “9 See Eckbo, Masulis and Norli (2006) for a review of this literature.”
Disclosure of intended use of proceeds and underpricing in initial public offerings (2007, unknown): “…al., 1988; Tinic, 1988; Schultz, 1993), issuer age (Beatty, 1989; Ibbotson et al., 1988; Schultz, 1993), high technology (Loughran and Ritter, 2001; Lowry and Shu, 2002), exchange listing (Lowry and Shu, 2002), ownership retention (Benveniste and Spindt, 1989; Beatty and Welch, 1996), the IPO…”
Litigation Risk, Strategic Disclosure and the Underpricing of Initial Public Offerings (2012, methodology): “Like Drake and Vetsuypens (1993) and Lowry and Shu (2002), we find no difference in initial returns between sued IPOs and non-sued IPOs using an ex post class action lawsuit dummy.”