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 ...

In a typical IPO game with first-price auctions, we argue that risk-averse investors always underbid in equilibrium because of subjective interpretations of the firm’ communication about its actual value and resulting risk aversion about the likelihood of facing investors with higher valuations. We show that the noisier the investors’ inferences of the firm’ value (in the sense of first-order s...

Economists have long been puzzled by event-ticket underpricing: underpricing reduces revenue for the performer and encourages socially wasteful rent-seeking ticket brokers. What about using an auction? This paper studies introduction of auctions into this market Ticketmaster in mid-2000s. By combining primary-market auction data from with secondary-market resale value eBay, we show that Ticketm...

In this study, we use initial public offerings (IPOs) in China to investigate how online stock forums influence information asymmetry and IPO valuation. The empirical analysis isolates the underpricing overvaluation components of returns. number forum comments, postings, readings are positively associated with returns degree underpricing, implying that create noise exacerbates during IPOs. This...

The present research shows the influence of institutional differences on performance initial public offerings (IPOs), both at level underpricing and 1-, 3- 5-year performance. Our results represent a relevant empirical contribution to international evidence because they allow us test long-term in large database consisting IPOs from 18 European countries, given that framework has been less analy...