In an initial coin offering (ICO), a company (or an open-source project) raises funds by pre-selling access to a later product or service. We present a model that rationalizes the use of ICOs for launching peer-to-peer platforms: by adding dynamics to a platform launch, ICOs can 1) solve a coordination failure inherent in many platforms with network effects; and 2) harness the “wisdom of the cr...

This paper empirically investigates the links between the motives for going public and changes in the market value and efficiency of new stock companies. Using a sample of 200 firms from Warsaw Stock Exchange between 2005 and 2012, I find that the principal purpose of initial public offering is raising additional capital by the company, but divestment grounds of initial shareholders are also im...

The publication of Michael Lewis’ Flash Boys in early April, 2014, generated an intense month-long wave of publicity surrounding high frequency trading (HFT) firms, much of it unfavorable. In a typical example, Paul Krugman, writing in a New York Times editorial that appeared just after publication of Flash Boys, conflated HFT trading practices with the proliferation of complex derivatives prod...

Using the recent IPO of Google as an example, we provide empirical evidence to better understand issuers’ decision process at the IPO stage. Our results suggest that Google timed its offering based on both the general market and the IPO market conditions. Selling shareholders took advantage of information gathered during the registration process and adjusted the number of secondary shares offer...

This paper investigates, both theoretically and empirically, how earnings management and ownership retention interact, and how these two jointly affect the equilibrium market valuation of IPO firms in the presence of information asymmetry. Analytically, this paper extends the univariate signaling framework of Leland and Pyle (1977) and derives an efficient signaling equilibrium in which both re...

This study examines differentiated financial risk tolerance attitudes between three listing branches within the Australian Securities Exchange’s (ASX) standardised environment. Western Australia’s (WA) concentration of earlier-stage IPOs (51% all ASX small, (predominately mining) initial public offerings (IPOs)) appears to reflect a localised ‘entrepreneurial’ attitude towards smaller, higher-r...

This study intends to examine the factors that influence amount of underpricing equities during initial public offerings on Indonesia Stock Exchange. analysis makes use secondary data in form financial statement and other firm information from 2017-2020 IPOs The research sample consisted 150 firms selected using techniques purposive selection. employs linear regression approach panel STATA for ...