Is the IPO pricing process efficient

By Michelle René Lowry, G. Schwert, H. DeAngelo, Craig G. Dunbar, B. Espen Eckbo, Jean Helwege, Tim Loughran, Alexander P. Ljungqvist, Vojislav Maksimovic, Jay R. Ritter and 6 more. 2004

365 citations recorded by the source corpus.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/db49a4344784fb48f5210add30659f64759e427f

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Jay R. Ritter
2. Michelle René Lowry
3. Xiaoding Liu
4. Elizabeth Blankespoor
5. Micah S. Officer
6. Oya Altinkiliç
7. Robert S. Hansen
8. G. Schwert

Citations in the corpus

• Perceptions and Price: Evidence from CEO Presentations at IPO Roadshows (2017, background): “In fact, the majority of final offerings price outside of the initially proposed range, suggesting that investors’ indications of interest are often significantly different from underwriters’ expectations (Cornelli and Goldreich, 2001, 2003; Lowry and Schwert, 2004).”
• Issuer surplus and the partial adjustment of IPO prices to public information (2005, neutral): “See, for example, Loughran and Ritter, 2002; Demers and Lewellen, 2002; Lowry and Schwert, 2003 ).”
• Political Connections and the Process of Going Public: Evidence from China (2009, neutral): “Lowry and Schwert (2004) analyze the efficiency of the IPO pricing process in the US market, where after an initial range of offering prices is set by the underwriters, the offer price is determined subsequent to the road show and prior to the issuing date.”
• The Effect of Issuer Conservatism on IPO Pricing and Performance (2013, methodology): “This is consistent with the use of a low initial price range for firms using more cautionary language in their prospectuses (Lowry and Schwert, 2004). performance innovations.”
• Executive stock options and IPO underpricing (2007, background): “Loughran and Ritter (2004) and Lowry and Schwert (2004) show that many factors influenced underpricing differently during the bubble period, suggesting that our coefficient estimates in the Table 3 regressions might not be stable throughout our sample period.”
• Discounting and underpricing in seasoned equity offers (2003, background): “Studies show that underpricing is larger in unseasoned offers by firms in high-technology industries (see, for example, Mola and Loughran, 2001; Lowry and Schwert, 2003; Bradley and Jordan, 2002) and when underpricing of other recent unseasoned offers is higher (Bradley and Jordan, 2002; Benveniste ”
• Local Underwriter Oligopolies and IPO Underpricing (2011, positive): “35 results corroborate the findings in Lowry and Schwert (2004) that the midpoint of the filing range is not an unbiased predictor of the offer price.”
• The Variability of IPO Initial Returns (2010, background): “For example, Beatty and Ritter’s (1986) extension of Rock (1986) predicts that companies characterized by higher information asymmetry will tend to be more underpriced on average, a prediction that has received considerable empirical support (see, e.g., Michaely and Shaw (1994)).”
• Underwriter Networks, Investor Attention, and Initial Public Offerings (2016, neutral): “However, Lowry and Schwert (2004) show that, in about 40% of cases,”