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Economics Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26614
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| Title: | IPO pricing in the dot-com bubble |
| Authors: | Ljungqvist, Alexander P.
Wilhelm, William J. Jr. |
| Keywords: | Initial public offerings
Underpricing; Intermediation
Internet
Hot issue markets |
| Issue Date: | 8-Feb-2002 |
| Series/Report no.: | FIN-01-061 |
| Abstract: | IPO initial returns reached astronomical levels during 1999-2000. We
show that the regime shift in initial returns and other elements of
pricing behavior can be at least partially accounted for by a variety of
marked changes in pre-IPO ownership structure and insider selling
behavior over the period which reduced key decision-makers’
incentives to control underpricing. After controlling for these changes,
there appears to be little special about the 1999-2000 period, aside
from the preponderance of internet and high-tech firms going public. Our
results suggest that it was firm characteristics that were unique during
the “dot-com bubble” and that pricing behavior followed from
incentives created by these characteristics. |
| URI: | http://hdl.handle.net/2451/26614 |
| Appears in Collections: | Economics Working Papers
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