Skip navigation
Full metadata record
DC FieldValueLanguage
dc.contributor.authorLjungqvist, Alexander-
dc.contributor.authorWilhelm, William J. Jr.-
dc.date.accessioned2008-05-30T10:52:08Z-
dc.date.available2008-05-30T10:52:08Z-
dc.date.issued2001-08-29-
dc.identifier.urihttp://hdl.handle.net/2451/27186-
dc.description.abstractWe estimate the structural links between IPO allocations, pre-market information production, and initial underpricing returns, within the context of theories of book building. Using a sample of both U.S. and international IPOs we find evidence of the following: · IPO allocation policies favor institutional investors, both in the U.S. and worldwide. ·Constraints on the discretion bankers exercise in the allocation of IPO shares reduce institutional allocations. ·Constraints on allocation discretion result in offer prices that deviate less from the indicative price range established prior to bankers’ efforts to gauge demand among institutional investors. We interpret this as indicative of diminished information production. · Initial returns, which reflect a significant indirect cost of going public, are directly related to this measure of information production and inversely related to the fraction of shares allocated to institutional investors.en
dc.language.isoen_USen
dc.relation.ispartofseriesS-FI-01-02en
dc.subjectInitial public offeringsen
dc.subjectBookbuildingen
dc.subjectUnderpricingen
dc.subjectIntermediationen
dc.titleIPO Allocations: Discriminatory or Discretionary?en
dc.typeWorking Paperen
Appears in Collections:Financial Institutions

Files in This Item:
File Description SizeFormat 
S-FI-01-02.pdf165 kBAdobe PDFView/Open


Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.