Is Underpricing an Appropriate Proxy for Studying IPO Certification?

Autor:	Donald G. Ross, Mike Hopkins
Rok vydání:	2014
Předmět:	Variable (computer science) Private equity ComputingMilieux_THECOMPUTINGPROFESSION Vendor business.industry Accounting Context (language use) Certification Business Proxy (statistics) Initial public offering
Zdroj:	International Journal of Economics and Finance. 6
ISSN:	1916-9728 1916-971X
DOI:	10.5539/ijef.v6n5p117
Popis:	The dominant technique used to evidence certification effects at IPO is to employ the degree of underpricing as a proxy for certification. We investigate the appropriateness of this proxy in the context of private equity backed IPOs. Our results reveal an incongruence between certification by the vendor and expectations of underpricing. We also find expectations of underpricing are driven by reduced informational asymmetries between the vendor and the vendor’s broker rather than between the vendor and the market. Our conclusion is that underpricing is too noisy a variable to be a reliable proxy for certification in this context.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::619597afd97194692a19baffdec18d87 https://doi.org/10.5539/ijef.v6n5p117 Zobrazit plný text záznamu