Access the full text.
Sign up today, get DeepDyve free for 14 days.
Garfinkel Garfinkel (1993)
IPO underpricing, insider selling and subsequent equity offerings: Is underpricing a signal of quality?Financial Management, 22
Myers Myers, Majluf Majluf (1984)
Corporate financing and investment decisions when firms have information that investors do not haveJournal of Financial Economics, 13
Bradley Bradley, Jordan Jordan, Ritter Ritter (2003)
The quiet period goes out with a bankJournal of Finance, 58
Trahan Trahan, Gitman Gitman (1995)
Bridging the theory–practice gap in corporate finance: A survey of chief financial officersQuarterly Review of Economics and Finance, 35
Schultz Schultz (1993)
Unit initial public offerings: A form of staged financingJournal of Financial Economics, 34
Welch Welch (1992)
Sequential sales, learning, and cascadesJournal of Finance, 47
Benveniste (1990)
A comparative analysis of IPO proceeds under alternative regulatory environmentsJournal of Financial Economics, 28
Baron (1980)
The investment banking contract for new issues under asymmetric information: Delegation and the incentive problemJournal of Finance, 35
Allen (1989)
Signaling by underpricing in the IPO marketJournal of Financial Economics, 23
Aggarwal (2000)
Stabilization activities by underwriters after initial public offeringsJournal of Finance, 55
Cho Cho (1992)
The possibility of failure and the pricing of best‐efforts initial public offeringsQuarterly Review of Economics and Finance, 32
Ljungqvist Ljungqvist, Wilhelm Wilhelm (2003)
IPO pricing in the dot‐com bubbleJournal of Finance, 58
Mello Mello, Parsons Parsons (2000)
Hedging and liquidityReview of Financial Studies, 13
Sherman Sherman (1992)
The pricing of best efforts new issuesJournal of Finance, 47
Baron (1982)
A model of the demand for investment banking advising and distribution services for new issuesJournal of Finance, 37
Spatt Spatt, Srivastava Srivastava (1991)
Preplay communication, participation restrictions, and efficiency in initial public offeringsReview of Financial Studies, 4
Michaely Michaely, Shaw Shaw (1994)
The pricing of initial public offerings: Tests of adverse‐selection and signaling theoriesReview of Financial Studies, 7
Rock Rock (1986)
Why new issues are underpricedJournal of Financial Economics, 15
Habib Habib, Ljungqvist Ljungqvist (2001)
Underpricing and entrepreneurial wealth losses in IPOs: Theory and evidenceReview of Financial Studies, 14
Barry (1991)
Underwriter warrants, underwriter compensation, and the costs of going publicJournal of Financial Economics, 29
Jegadeesh Jegadeesh, Weinstein Weinstein, Welch Welch (1993)
An empirical investigation of IPO returns and subsequent equity offeringsJournal of Financial Economics, 34
Pagano Pagano, Panetta Panetta, Zingales Zingales (1998)
Why do companies go public? An empirical analysisJournal of Finance, 53
Ritter Ritter (1980)
The “hot issue” market of 1980Journal of Business, 57
Scott Scott (1976)
A theory of optimal capital structureBell Journal of Economics, 7
Welch Welch (1991)
An empirical analysis of models of contract choice in initial public offeringsJournal of Financial and Quantitative Analysis, 26
Hughes Hughes, Thakor Thakor (1992)
Litigation risk, intermediation, and the underpricing of initial public offeringsReview of Financial Studies, 5
Lucas Lucas, McDonald McDonald (1990)
Equity issues and stock price dynamicsJournal of Finance, 45
Barber (1999)
Improved methods for tests of long-run abnormal stock returnsJournal of Finance, 54
Benveniste (1989)
How investment bankers determine the offer price and allocation of new issuesJournal of Financial Economics, 24
Myers Myers (1984)
The capital structure puzzleJournal of Finance, 39
Megginson Megginson, Weiss Weiss (1991)
Venture capital certification in initial public offeringsJournal of Finance, 46
Bradley Bradley, Jordan Jordan (2002)
Partial adjustment to public information and IPO underpricingJournal of Financial and Quantitative Analysis, 37
Beatty (1986)
Investment banking, reputation, and the underpricing of initial public offeringsJournal of Financial Economics, 15
Demers Demers, Lewellen Lewellen (2003)
The marketing role of IPOs: Evidence from internet stocksJournal of Financial Economics, 68
Krigman Krigman, Shaw Shaw, Womack Womack (1999)
The persistence of IPO mispricing and the predictive power of flippingJournal of Finance, 54
Krigman Krigman, Shaw Shaw, Womack Womack (2001)
Why do firms switch underwriters?Journal of Financial Economics, 60
Choe Choe, Masulis Masulis, Nanda Nanda (1993)
Common stock offerings across the business cycle: Theory and evidenceJournal of Empirical Finance, 1
Beatty (1989)
Auditor reputation and the pricing of initial public offeringsThe Accounting Review, 64
Loughran Loughran, Ritter Ritter (2002)
Why don't issuers get upset about leaving money on the table in IPOs?Review of Financial Studies, 15
Mandelker Mandelker, Raviv Raviv (1977)
Investment banking: An economic analysis of optimal underwriting contractsJournal of Finance, 32
Loughran Loughran, Ritter Ritter (1995)
The new issues puzzleJournal of Finance, 50
Maynard Maynard (2002)
Spinning in a hot IPO—Breach of fiduciary duty or business as usual?William and Mary Law Review, 43
Pinegar Pinegar, Wilbricht Wilbricht (1989)
What managers think of capital structure theory: A surveyFinancial Management, 18
Aggarwal (2003)
Allocation of initial public offerings and flipping activityJournal of Financial Economics, 68
Ang (2003)
Concealing and confounding adverse signals: Insider wealth-maximizing behavior in the IPO processJournal of Financial Economics, 40
Drake Drake, Vetsuypens Vetsuypens (1993)
IPO underpricing and insurance against legal liabilityFinancial Management, 22
Modigliani Modigliani, Miller Miller (1963)
Corporate income taxes and the cost of capital: A correctionAmerican Economic Review, 53
Ritter Ritter (1991)
The long‐run performance of initial public offeringsJournal of Finance, 46
Welch Welch (1989)
Seasoned offerings, imitation costs, and the underpricing of initial public offeringsJournal of Finance, 44
Booth Booth, Smith Smith (1986)
Capital raising, underwriting and the certification processJournal of Financial Economics, 15
Carter Carter, Dark Dark, Singh Singh (1998)
Underwriter reputation, initial returns, and long‐run performance of IPO stocksJournal of Finance, 53
Courteau Courteau (1995)
Under‐diversification and retention commitments in IPOsJournal of Financial and Quantitative Analysis, 30
Brav Brav, Gompers Gompers (2003)
The role of lockups in initial public offeringsReview of Financial Studies, 16
Field Field, Hanka Hanka (2001)
The expiration of IPO share lockupsJournal of Finance, 56
Black (1998)
Venture capital and the structure of capital markets: Banks versus stock marketsJournal of Financial Economics, 47
Stoughton Stoughton, Zechner Zechner (1998)
IPO‐mechanisms, monitoring and ownership structureJournal of Financial Economics, 49
Booth Booth, Chua Chua (1996)
Ownership dispersion, costly information, and IPO underpricingJournal of Financial Economics, 41
Ibbotson Ibbotson, Jaffe Jaffe (1975)
“Hot issue” marketsJournal of Finance, 30
Chemmanur Chemmanur, Fulghieri Fulghieri (1999)
A theory of the going‐public decisionReview of Financial Studies, 12
Welch Welch (2000)
Views of financial economists on the equity premium and on professional controversiesJournal of Business, 73
Zhang Zhang (2004)
Why do IPO underwriters allocate extra shares when they expect to buy them back?Journal of Financial and Quantitative Analysis, 39
Zingales Zingales (1995)
Insider ownership and the decision to go publicReview of Economic Studies, 60
Michaely Michaely, Shaw Shaw (1995)
Does the choice of auditor convey quality in an initial public offering?Financial Management, 24
Moore Moore, Reichert Reichert (1983)
An analysis of the financial management techniques currently employed by large, U.S. corporationsJournal of Business Finance and Accounting, 10
Titman Titman, Trueman Trueman (1986)
Information quality and the valuation of new issuesJournal of Accounting and Economics, 8
Lowery Lowery, Schwert Schwert (2002)
IPO market cycles: Bubbles or sequential learning?Journal of Finance, 57
Bradley Bradley, Cooney Cooney, Jordan Jordan, Singh Singh (2004)
Negotiation and the IPO offer price: A comparison of integer vs. non‐integer IPOsJournal of Financial and Quantitative Analysis, 39
Fishe Fishe (2002)
How stock flippers affect IPO pricing and stabilizationJournal of Financial and Quantitative Analysis, 37
Chemmanur Chemmanur, Fulghieri Fulghieri (1997)
Why include warrants in new equity issues? A theory of unit IPOsJournal of Financial and Quantitative Analysis, 32
Tinic Tinic (1988)
Anatomy of initial public offerings of common stockJournal of Finance, 43
Brau Brau, Francis Francis, Kohers Kohers (2003)
The choice of IPO versus takeover: Empirical evidenceJournal of Business, 76
Barry (1990)
The role of venture capital in the creation of public companiesJournal of Financial Economics, 27
Brennan Brennan, Franks Franks (1997)
Underpricing ownership and control in initial public offerings of equity securities in the U.K.Journal of Financial Economics, 45
Maksimovic Maksimovic, Pichler Pichler (2001)
Technological innovation and initial public offeringsReview of Financial Studies, 14
Graham Graham, Harvey Harvey (2001)
The theory and practice of corporate finance: Evidence from the fieldJournal of Financial Economics, 30
Ritter Ritter (1987)
The costs of going publicJournal of Financial Economics, 18
Ritter Ritter, Welch Welch (2002)
A review of IPO activity, pricing, and allocationsJournal of Finance, 57
Lowery Lowery (2002)
Why does IPO volume fluctuate so much?Journal of Financial Economics, 67
Carter Carter, Manaster Manaster (1990)
Initial public offerings and underwriter reputationJournal of Finance, 45
Griffith Griffith (2004)
Spinning and underpricing: A legal and economic analysis of the preferential allocation of shares in initial public offeringsBrooklyn Law Review, 69
Chemmanur Chemmanur (1993)
The pricing of initial public offers: A dynamic model with information productionJournal of Finance, 48
Leland Leland, Pyle Pyle (1977)
Information asymmetries, financial structure, and financial intermediationJournal of Finance, 32
Brau Brau, Lambson Lambson, McQueen McQueen (2005)
Lockups revisitedJournal of Financial and Quantitative Analysis, 40
Wallace Wallace, Mellor Mellor (1988)
Nonresponse bias in mail accounting surveys: A pedagogical noteBritish Accounting Review, 20
Teoh Teoh, Welch Welch, Wong Wong (1998)
Earnings management and the long‐run performance of initial public offeringsJournal of Finance, 53
ABSTRACT We survey 336 chief financial officers (CFOs) to compare practice to theory in the areas of initial public offering (IPO) motivation, timing, underwriter selection, underpricing, signaling, and the decision to remain private. We find the primary motivation for going public is to facilitate acquisitions. CFOs base IPO timing on overall market conditions, are well informed regarding expected underpricing, and feel underpricing compensates investors for taking risk. The most important positive signal is past historical earnings, followed by underwriter certification. CFOs have divergent opinions about the IPO process depending on firm‐specific characteristics. Finally, we find the main reason for remaining private is to preserve decision‐making control and ownership.
The Journal of Finance – Wiley
Published: Feb 1, 2006
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.