Why Has IPO Underpricing Increased Over Time

By Tim Loughran. 2002

186 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/c800eb597b2210e0af77eb0110d6b0119a006553

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Citations in the corpus

Negotiation and the IPO Offer Price: A Comparison of Integer vs. Non-Integer IPOs (2004, unknown): “3 In two recent papers, Mola and Loughran (2004) and Corwin (2003) document that seasoned equity offerings (SEOs) are often priced on integers.”
Management Quality, Certification, And Initial Public Offerings ♣ (2005, background): “See, however, the discussion in Loughran and Ritter (2001) on the relationship between venture-capital backing and IPO underpricing.”
IPO Pricing in the Dot-Com Bubble (2003, methodology): “As in Loughran and Ritter (2001b), the founding date is defined as the date when 4 A detailed discussion of the errors we found in the SDC data can be found at http://pages.stern.nyu.edu/~aljungqv/research.htm.”
Institutional versus Individual Investment in IPOs: The Importance of Firm Fundamentals (2009, unknown): “Underwriter rank is the average Carter-Manaster (1990) underwriter ranking score, as updated by Loughran and Ritter (2004).”
Wanna Dance? How Firms and Underwriters Choose Each Other (2005, unknown): “30 Loughran and Ritter (2002) document that such a relation seems to have existed in the 1980’s but has weakened and eventually disappeared by the end of the 1990s.”
Pricing of Seasoned Equity Offers and Earnings Management (2005, methodology): “where NDAit is the fitted value of firm i’s nondiscretionary accruals (NDAs), deflated by lagged total assets, in quarter t, REV it is the change in net revenues between quarter t and quarter t 1, RECit is the change in net receivables, PPEit is gross property, plant, and equipment, and A it 1 is la”
Disclosure of intended use of proceeds and underpricing in initial public offerings (2007, unknown): “Where: Ln(Underpricing) = Ln(1 + first-day initial return) Assets/Proceeds = Pre-IPO total assets / Gross proceeds from the IPO Ln(1+Age) = Ln(1 + number of years from incorporation to IPO) HighTech = One if issuer is high technology (Loughran and Ritter, 2001) and zero otherwise NYSEAMEX = One if s”
Which Shorts Are Informed (2008, unknown): “non-tech firms using the SIC codes in Loughran and Ritter (2004) and recalculate return differences based on shorting activity.”
Is the IPO pricing process efficient (2004, methodology): “However, Loughran and Ritter (2002a) propose a prospect theory explanation, which predicts that both public and private information will be only partially incorporated into the offer price, and they find evidence consistent with this theory.”
The effects of venture capital syndicate diversity on earnings management and performance of IPOs in the US and UK: An institutional perspective ☆ (2012, unknown): “We also calculate the cumulative market share over a five-year period prior to the 4 In line with Loughran and Ritter (2004), hi-tech firms as those with the following SIC codes: 3571, 3572, 3575, 3577, 3578 (computer hardware), 3661,…”