There is a general perception that the large trading volume in initial public offerings is mostly due to ‘‘flippers’’ that are allocated shares in the offering and immediately resell them. On average, however, flipping accounts for only 19% of trading volume and 15% of shares offered during the first two days of trading. Institutions do more flipping than retail customers and hot IPOs are flipp...

Abstract. This chapter explores the stock price impact of expirations of lock-up provisions that prevent insiders from selling their shares after the Initial Public Offering (IPO). I examine 172 lock-up expirations of 142 IPOs floated on Germany’s Neuer Markt. I detect significant negative abnormal returns and a twenty-five percent increase in trading volume surrounding lock-up expiration. The ...

This paper explores optimal ways for a firm to sell its initial public offering (IPO) to a mix of informed and uninformed investors through an intermediary. I argue that uninformed investors provide a benchmark for informed investors, resulting in an endogenous constraint that affects the issuer’s revenue. I conclude that higher revenues are achieved with higher numbers of uninformed investors ...

We describe two theoretical explanations for the amount, pace, and costs of the prestige enhancement a firm engages in during the year before its initial public offering. The “snowball model” captures well-known processes whereby prestige-rich organizations accumulate even more prestige. The “dressing-up model” builds upon deadline-induced remediation, a phenomenon not previously studied in a m...

The Bohai Economic Rim plays an important role in supporting China’s economic growth. For this research, we selected nine main ports in the region to study whether intra-port competition or corporatization would improve efficiency. Using a panel fixed effect model and stochastic frontier model, we found that the technical efficiency of selected ports is significantly influenced by the time of t...

An important feature of bond markets is the relationship between initial public offering prices and the probability of the issuer defaulting. First, this probability affects bond prices. Second, IPO prices determine the default probability. Though the market equilibrium has been shown to predict well for other assets, it is a priori unclear whether markets will yield competitive prices when suc...

This paper investigates the correlation between pre-initial public offering (pre-IPO) earnings management and underwriter reputation for issuers with different ownership structures in China. We document a significantly inverse relationship between underwriter reputation and pre-IPO earnings management for non-state-owned enterprises (NSOE) issuers only, while no significant association is found...

Trademarks differ in breadth and can cover a wide range of categories goods services. We draw on real options theory argue that greater trademark constitutes valuable option is associated with higher firm valuation performance. analyze sample 1510 firms went public Europe between 2002 2015 find positive effect initial offering (IPO) post-IPO implement contingency analysis to contrast signaling ...

Abstract Legal issues of ICOs are significant in the contemporary financial world because this method capital formation is becoming widespread. In spite significance ICOs, there no regulations field most important legal systems. Therefore, research concerning future provisions area needed. This paper concerns related to scope and structure applicable ICOs. The author focuses on principles which...

ABSTRACTThe Financial Services Authority has issued the latest regulation in Capital Market sector, namely Regulation Number 3/POJK.04/2021 concerning Implementation of Activities Sector. This paper aims to conduct a more specific analysis regarding mandatory elements for company that will public offering list its equity securities on stock exchange. The initiation obligation listing is carried...