Journal article
Why Are European IPOs So Rarely Priced Outside the Indicative Price Range?
- Abstract:
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Unlike in the U.S., the initial price range for European IPOs is seldom revised, although issues are often priced at the upper bound. We develop a model that explains this seemingly inefficient pricing behavior. As in Europe, but not in the U.S., underwriters in the model obtain information from investors before establishing the indicative price range. A commitment to stay within the range is necessary to extract private information from investors. Ours is therefore the first treatment in whi...
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- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Files:
-
-
(Accepted manuscript, pdf, 291.8KB)
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- Publisher copy:
- 10.1016/j.jfineco.2005.05.001
Authors
Bibliographic Details
- Publisher:
- Elsevier Publisher's website
- Journal:
- Journal of Financial Economics Journal website
- Volume:
- 80
- Issue:
- 1
- Pages:
- 185 - 209
- Publication date:
- 2006-01-01
- DOI:
- ISSN:
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0304-405X
Item Description
- Language:
- English
- UUID:
-
uuid:8d0807d5-0ad6-4ab3-a01e-720c9469ed6b
- Local pid:
- oai:economics.ouls.ox.ac.uk:10981
- Deposit date:
- 2011-08-16
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Terms of use
- Copyright holder:
- Elsevier BV
- Copyright date:
- 2006
- Notes:
- © 2005 Elsevier B.V. All rights reserved. NOTICE: this is the author's version of a work that was accepted for publication in Journal of Financial Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Financial Economics, 80, 1, (April 2006), DOI#10.1016/j.jfineco.2005.05.001
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