Do Underwriters Price Up IPOs to Prevent Withdrawal?
研究承销商是否通过提高需求疲软的IPO定价来防止发行撤回，发现当撤回风险高时，定价在发行区间下限的IPO被高估，导致后续回报低8.4个百分点。
We examine whether underwriters price up weakly demanded initial public offerings (IPOs) to prevent withdrawal. Our empirical strategy exploits a discontinuity in the distribution of IPO prices around the low boundary of the filing range. Offerings with a high ex ante withdrawal probability that are priced at this boundary are likely priced up to meet issuers’ reservation prices. We compare the aftermarket returns of these IPOs to the returns of other weakly demanded offerings where issuers’ reservation prices were likely not binding, and we identify a negative 8.4-percentage-point differential attributable to the aggressive pricing inherent in setting the price at the low boundary when withdrawal risk is high.