Access the full text.
Sign up today, get DeepDyve free for 14 days.
Tim Campbell, William Kracaw (1980)
Information Production, Market Signalling, and the Theory of Financial IntermediationJournal of Finance, 35
J. Ritter (1991)
The Long-Run Performance of Initial Public OfferingsJournal of Finance, 46
R. Shiller (1990)
Speculative Prices and Popular ModelsJournal of Economic Perspectives, 4
I. Welch (1989)
Seasoned Offerings, Imitation Costs, and the Underpricing of Initial Public OfferingsJournal of Finance, 44
I. Welch (1992)
Sequential Sales, Learning, and CascadesJournal of Finance, 47
Kreps Kreps, Wilson Wilson (1982)
Sequential equilibriumEconometrica, 50
R. Ibbotson, J. Jaffe (1975)
"Hot Issue" MarketsJournal of Finance, 30
Paul Milgrom (1981)
Rational Expectations, Information Acquisition, and Competitive BiddingEconometrica, 49
J. McDonald, A. Fisher (1972)
NEW‐ISSUE STOCK PRICE BEHAVIORJournal of Finance, 27
(1982)
Sequential equilibrium , Econometrica
H. Leland., David Pyle. (1977)
INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATIONJournal of Finance, 32
Kevin Rock (1986)
Why new issues are underpricedJournal of Financial Economics, 15
M. Hellwig (1980)
On the aggregation of information in competitive marketsJournal of Economic Theory, 22
S. Tiniç (1988)
Anatomy of Initial Public Offerings of Common StockJournal of Finance, 43
Clifford Smith (1986)
INVESTMENT BANKING AND THE CAPITAL ACQUISITION PROCESSJournal of Financial Economics, 15
J. Ritter (1984)
The "Hot Issue" Market of 1980The Journal of Business, 57
Sanford Grossman (1976)
ON THE EFFICIENCY OF COMPETITIVE STOCK MARKETS WHERE TRADES HAVE DIVERSE INFORMATIONJournal of Finance, 31
R. Ibbotson, J. Sindelar, J. Ritter (1988)
INITIAL PUBLIC OFFERINGSJournal of Applied Corporate Finance, 1
Mark Grinblatt, C. Hwang (1989)
Signalling and the Pricing of New IssuesJournal of Finance, 44
Richard Carter, Steven Manaster (1990)
Initial Public Offerings and Underwriter ReputationJournal of Finance, 45
Lawrence Benveniste, P. Spindt (1989)
How investment bankers determine the offer price and allocation of new issuesJournal of Financial Economics, 24
Grinblatt Grinblatt, Hwang Hwang (1989)
Signalling and the pricing of unseasoned new issuesJournal of Finance, 44
Chris Muscarella, Michael Vetsuypens (1989)
A simple test of Baron's model of IPO underpricing☆Journal of Financial Economics, 24
R. Ibbotson (1975)
Price performance of common stock new issuesJournal of Financial Economics, 2
D. Logue (1973)
ON THE PRICING OF UNSEASONED EQUITY ISSUES: 1965-1969Journal of Financial and Quantitative Analysis, 8
M. Degroot (1970)
Optimal Statistical Decisions
Randolph Beatty, J. Ritter (1986)
INVESTMENT BANKING, REPUTATION, AND THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS*Journal of Financial Economics, 15
Franklin Allen, Gerald Faulhaber (1989)
Signalling by underpricing in the IPO marketJournal of Financial Economics, 23
Douglas Diamond, Robert Verrecchia (1981)
Information aggregation in a noisy rational expectations economyJournal of Financial Economics, 9
S. Ross (1977)
The determination of financial structure: the incentive-signalling approachThe Bell Journal of Economics, 8
ABSTRACT This paper presents an information‐theoretic model of IPO pricing in which insiders sell stock in both the IPO and the secondary market, have private information about their firm's prospects, and outsiders may engage in costly information production about the firm. High‐value firms, knowing they are going to pool with low‐value firms, induce outsiders to engage in information production by underpricing, which compensates outsiders for the cost of producing information. The information is reflected in the secondary market price of equity, giving a higher expected stock price for high‐value firms.
The Journal of Finance – Wiley
Published: Mar 1, 1993
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.