Value Gains on Flotation and IPO Underpricing
利用502家英国IPO数据，分析IPO抑价与上市价值增益的关系，发现抑价程度与预期价值增益相关，且由承销商和公司董事共同驱动。
Abstract: Utilising a unique dataset of 502 UK IPOs we undertake an empirical analysis of the relationship between underpricing and value gains on flotation. We find support for our hypothesis that IPO underpricing is related to the extent of anticipated value gains on the private to public transition. We analyse alternative driving mechanisms behind this relationship, and our results suggest that the underpricing of IPOs is driven by both underwriters and issuing company directors, each of whom derive net benefits over the longer term from underpricing at the IPO.