Impact of the Penny Stock Reform Act of 1990 on the Initial Public Offering Market
研究了1990年便士股票改革法案对低价股IPO的限制效果，发现该法案虽减少了低于5美元的IPO数量，但未实质提升发行公司质量，反而导致投机性发行公司转向高价股区间，降低了非便士股票的超常收益。
The Penny Stock Reform Act of 1990 (PSRA) was an attempt to curb fraudulent security issues by placing severe restrictions on initial public offerings that were priced below $5. The regulation had the cosmetic effect of reducing the number of initial public offerings priced below $5 but had no substantive impact on issuer quality. Delisting risk, which is a measure of issuer quality, did not decline significantly in the post‐PSRA period. Instead, abnormal returns earned by a portfolio of nonpenny stocks declined significantly in the post‐PSRA period. We present evidence that attributes the decline in abnormal returns to the migration of speculative issuers into the nonpenny range.