Coakley, J and Hadass, L and Wood, A (2009) UK IPO underpricing and venture capitalists. The European Journal of Finance, 15 (4). pp. 421-435. DOI https://doi.org/10.1080/13518470802560915
Coakley, J and Hadass, L and Wood, A (2009) UK IPO underpricing and venture capitalists. The European Journal of Finance, 15 (4). pp. 421-435. DOI https://doi.org/10.1080/13518470802560915
Coakley, J and Hadass, L and Wood, A (2009) UK IPO underpricing and venture capitalists. The European Journal of Finance, 15 (4). pp. 421-435. DOI https://doi.org/10.1080/13518470802560915
Abstract
We analyze the nature and causes of short run underpricing for a unique sample of 591 IPOs issued on the London Stock Exchange for the period 1985-2003. We find significant differences between the 1998-2000 bubble years and the rest of the sample. Venture capitalists and reputable underwriters played a certification role in the latter period but not during the bubble years. These years featured significant increases in underpricing, money left on the table, and a decline in operating quality. The combination of venture capitalists and prestigious underwriters were increasingly associated with the highest underpricing witnessed during 1998-2000 which provides indirect support for the spinning hypothesis.
Item Type: | Article |
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Uncontrolled Keywords: | IPO underpricing; venture capital; certification hypothesis; spinning |
Subjects: | H Social Sciences > HG Finance |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 17 Nov 2011 09:46 |
Last Modified: | 01 Nov 2024 14:13 |
URI: | http://repository.essex.ac.uk/id/eprint/1518 |