How does the creditor conflict affect bond IPO underpricing?
نویسندگان
چکیده
منابع مشابه
How Syndicate Short Sales Affect the Informational Efficiency of IPO Prices and Underpricing
When a company goes public it is standard practice that more shares are allocated than issued. The resulting short position that the offering syndicate holds is commonly filled either by aftermarket trading or by the execution of the so-called overallotment option, a standard feature of IPO arrangements. We propose a simple theoretical model to study the implications of this combination of shor...
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When a company goes public, it is standard practice that the underwriting syndicate allocates more shares than issued. The underwriter thus holds a short position that it commonly fills by aftermarket trading when market prices fall or, when prices rise, by executing the so-called overallotment option. This option is a standard feature of IPO arrangements that allows the underwriter to purchase...
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ژورنال
عنوان ژورنال: The Journal of Finance and Data Science
سال: 2021
ISSN: 2405-9188
DOI: 10.1016/j.jfds.2021.03.002