Initial public offerings in the hospitality industry? Underpricing and overperformance
نویسندگان
چکیده
منابع مشابه
Employee Stock Options and the Underpricing of Initial Public Offerings
The central question surrounding the IPO underpricing puzzle is why issuers are willing to sell their shares at a price that is less than what the market is willing to pay. This paper shows that a major reason why managers are willing to underprice shares at IPO is that they use options and stock grants to protect themselves from the dilution to their existing shares. Underpricing can have a la...
متن کاملEmployee Stock Options and the Underpricing of Initial Public Offerings
The central question surrounding the IPO underpricing puzzle is why issuers are willing to sell their shares at a price that is less than what the market is willing to pay. This paper shows that a major reason why managers are willing to underprice shares at IPO is that they use options and stock grants to protect themselves from the dilution to their existing shares. Underpricing can have a la...
متن کاملUnderstanding First-day Returns of Hospitality Initial Public Offerings
Excerpt] The decision for a company to issue shares publicly for the first time is not to be taken lightly. The manager-owner of a private firm must carefully weigh the benefits of an initial public offering (IPO) against the costs. Potential benefits include the ability to raise capital in the public markets on more attractive terms than in private circles; increased liquidity for managers and...
متن کاملThe Determinants of Underpricing: Initial Public Offerings on the Neuer Markt and the Nouveau Marché
This paper analyses the determinants of underpricing of firms that went public on the Nouveau Marché between 1996 and 2000 and on the Neuer Markt between 1997 and 2000. Evidence suggests that firms that went public on the Nouveau Marché experienced lower underpricing than their counterparts that went public on the Neuer Markt. This difference in underpricing is partly explained by the different...
متن کاملUnderpricing, underperformance and overreaction in initial public offerings: Evidence from investor attention using online searches
Online activity of Internet users has proven very useful in modeling various phenomena across a wide range of scientific disciplines. In our study, we focus on two stylized facts or puzzles surrounding the initial public offerings (IPOs) - the underpricing and the long-term underperformance. Using the Internet searches on Google, we proxy the investor attention before and during the day of the ...
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ژورنال
عنوان ژورنال: The Cornell Hotel and Restaurant Administration Quarterly
سال: 1996
ISSN: 0010-8804
DOI: 10.1016/0010-8804(96)88971-3