Is money really left on the table? The role of regular investors in IPO pricing
研究主承销商与机构投资者的长期关系如何影响IPO定价，发现这种关系既导致超额抑价（有利于常规投资者）又带来超额价格调整（有利于发行人），形成双赢结果。
Abstract We study how ongoing relationships between lead underwriters and institutional investors affect initial public offering (IPO) pricing. By introducing a new approach, we find that stronger relationships reduce the partial adjustment of the offer price, leaving ‘excess underpricing’ that favors regular investors, especially in hot IPOs, while generating an agency cost for issuers. At the same time, stronger relationships lead to higher offer prices, since they reduce information asymmetries and uncertainty in the primary market. This ‘excess price adjustment’ creates value for issuers. Taken together, these two apparently contradictory results reveal a win‐win outcome for issuers and regular investors.