A Review of IPO Activity, Pricing, and Allocations / Jay Ritter, Ivo Welch.

Format:

Book

Author/Creator:

Ritter, Jay.

Contributor:

National Bureau of Economic Research.

Welch, Ivo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8805.

NBER working paper series no. w8805

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2002.

Summary:

We review the theory and evidence on IPO activity: why firms go public, why they reward first-day investors with considerable underpricing, and how IPOs perform in the long run. Our perspective on the literature is three-fold: First, we believe that many IPO phenomena are not stationary. Second, we believe research into share allocation issues is the most promising area of research in IPOs at the moment. Third, we argue that asymmetric information is not the primary driver of many IPO phenomena. Instead, we believe future progress in the literature will come from non-rational and agency conflict explanations. We describe some promising such alternatives.

Notes:

Print version record

February 2002.