The Initial Public Offerings of Restaurant Firms: The Case of Industry-Specific Micromarket Capitalization Offerings
研究了59家餐饮企业IPO的定价特征，发现承销商选择和后续财务表现显著影响抑价和后市表现，小型区域投行承销的公司投资者兴趣低，抑价小且后市表现差。
We investigate the pricing characteristics of 59 initial public offerings (IPOs) of firms in the restaurant industry. Many of these offers are by extremely small micromarket capitalization companies, ones that are typically excluded from other studies of IPOs. We find that the choice of underwriter and the issuing company's subsequent financial performance significantly affect the level of underpricing and aftermarket performance. Companies that employ small, regional investment banking houses as underwriters fail to attract much investor interest, resulting in less underpricing and poorer aftermarket performance. In addition, investors appear to accurately appraise those firms that subsequently suffer from poor financial performance. This is demonstrated through greater underpricing to compensate investors for the greater perceived risk.