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Valuing initial public offerings ( IPOs ) using multiples allows underwriters discretion when selecting comparable firms. We find that they systematically exclude candidate comparable firms that make ...
available, or cannot be reliably identified. In particular, we examine the value relevance of price-earnings multiples disclosed by managers in IPO prospectuses in China. Using a sample of IPOs from 1992 ...
growth forecasts and pay insufficient attention to profitability in valuing IPOs . Amiyatosh K. Purnanandam Cornell University Bhaskaran Swaminathan Cornell University While IPOs have been underpriced ...
performance using 1992‐1996 data on 258 IPOs , classified into growth or value portfolios. Explains the methodology and presents the results, which show that value IPOs outperform growth IPOs , while both ...
the company's size and auditor's reputation as a benchmark for valuing IPO shares. This study also provides evidence that underpricing of IPOs can illustrate investor behavior in valuing developing ...
that underwriter reputation had a significant negative association with IPO valuation. Firms that engaged the services of reputable underwriters had their IPO offer prices set lower than the intrinsic values during ...
We investigate whether Article 11 pro forma financial information assists investors in valuing IPOs . While the SEC expects it to be helpful in assisting investment decisions, Article 11 pro forma ...
IPOs exhibit lower earnings management as compared to the low-graded IPOs . The findings are robust to the use of an alternative measure for discretionary accruals. Originality/ value – IPO grading ...
implications for underwriters in avoiding the mis-valuation issue by considering the book-building mechanism.Originality/valueThis study attempted to explore the suitability of the valuation method to value IPOs ...
and Veronesi’s (2003, 2005) argument that uncertainty surrounding a private firm’s expected profitability can impact how the firm is valued in the IPO aftermarket.Design/methodology/approachThis paper includes ...
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