Faculty Digital Archive

Archive@NYU >
Stern School of Business >
Salomon Center >
Financial Institutions >

Please use this identifier to cite or link to this item: http://hdl.handle.net/2451/27205

Title: IPO Pricing in the Dot-Com Bubble: Complacency or Incentives
Authors: Ljungqvist, Alexander P.
Wilhelm, William J. Jr.
Keywords: Initial public offerings
Underpricing
Intermediation
Internet
Hot issue markets
Issue Date: 12-Nov-2001
Series/Report no.: S-FI-01-12
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/2451/27205
Appears in Collections:Financial Institutions

Files in This Item:

File Description SizeFormat
S-FI-01-12.pdf142.73 kBAdobe PDFView/Open

Items in Faculty Digital Archive are protected by copyright, with all rights reserved, unless otherwise indicated.

 

The contents of the FDA may be subject to copyright, be offered under a Creative Commons license, or be in the public domain.
Please check items for rights statements. For information about NYU’s copyright policy, see http://www.nyu.edu/footer/copyright-and-fair-use.html 
Valid XHTML 1.0 | CSS