Autore, Don M.
[VerfasserIn]
;
Boulton, Thomas Jason
[Sonstige Person, Familie und Körperschaft];
Smart, Scott
[Sonstige Person, Familie und Körperschaft];
Zutter, Chad J.
[Sonstige Person, Familie und Körperschaft]
The Impact of Institutional Quality on Initial Public Offerings
Anmerkungen:
In: Journal of Economics and Business, Vol. 73, No. 1, 2014
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 1, 2014 erstellt
Beschreibung:
Country-level institutional quality is positively correlated with the underpricing of initial public offerings (IPOs). The association is strong for IPOs issued in developed markets, but nearly absent for emerging market IPOs. We hypothesize that extra-legal institutions, including financial reporting practices, law enforcement, public trust, and outside monitoring affect the availability and value of private benefits of control accessible to entrepreneurs, which in turn shapes the relation between institutional quality and IPO underpricing. Our evidence supports prior studies that suggest that underpricing is motivated, at least in part, by entrepreneurs' desire for post-IPO control