Journal article
Is the IPO pricing process efficient?
Journal of financial economics, v 71(1), pp 3-26
2004
Abstract
This paper investigates underwriters’ treatment of public information throughout the IPO pricing process. Two key findings emerge. First, public information is not fully incorporated into the initial price range. While the economic magnitude of the bias is small, it is puzzling because it is not clear who benefits from it. Further, it indicates that the filing range midpoint is not an unbiased predictor of the offer price, as prior literature has assumed. Second, while public information is similarly not fully incorporated into the final offer price, the small economic significance of this relation indicates that the IPO pricing process is
almost efficient.
Metrics
Details
- Title
- Is the IPO pricing process efficient?
- Creators
- Michelle Lowry - Pennsylvania State UniversityG.William Schwert - National Bureau of Economic Research
- Publication Details
- Journal of financial economics, v 71(1), pp 3-26
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000188202900001
- Scopus ID
- 2-s2.0-0346331568
- Other Identifier
- 991021881499704721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics