We review the theory and evidence on IPO activity: why firms go public, why they reward first‐
day investors with considerable underpricing, and how IPOs perform in the long run. Our …

Abstract Rock's [1] theory ascertains information asymmetry as a primary reason to answer
“Why New Issues are Underpriced?” Theoretical construct of this seminal work is based on …

In the bookbuilding procedure, an investment banker solicits bids for shares from
institutional investors prior to pricing an equity issue. The banker then prices the issue and …

This chapter analyzes the securities issuance process, focusing on initial public offerings
(IPOs) and seasoned equity offerings (SEOs). The IPO literature documents three empirical …

This brief survey discusses recent developments in the European initial public offering (IPO)
market. The spectacular rise and fall of the Euro NM markets and the growth of bookbuilding …

Corporate finance is the area of finance that studies the determinants of firms' values,
including capital structure, financing, and investment decisions. Although there are several …

This paper examines the underpricing of IPOs in the Chinese A-share market during the
period 1992–2006. Since its inception, the Chinese IPO market has transformed from a …

This paper examines the current status of research on IPOs in general, with special focus on
Asian IPOs. As in the case of US IPOs, most past studies on Asian IPOs deal with the issue …

Digital platforms for buying and selling agricultural commodities have generated significant
interest in the trade literature as a way to link rural communities to the Internet. Yet, the …

We analyze allocations to institutional and retail investors in 441 initial public offerings
(IPOs). In addition to the well-known favorable first-day returns, we show that institutions also …