Bigger pie, bigger slice: liquidity, value gain, and underpricing in IPOs

IF 2.1 2区经济学 Q2 BUSINESS, FINANCE

Journal of Financial Markets Pub Date : 2025-01-01 DOI:10.1016/j.finmar.2024.100949

Yang Guo , Lily Yuanzhi Li , Hongda Zhong

引用次数: 0

Abstract

Since investor participation is essential for successful IPOs, we hypothesize that issuers share value gain from IPOs with IPO investors, resulting in IPO underpricing. We test the positive relation between value gain and underpricing from the liquidity angle, as improved liquidity via IPO increases firm value. We find supporting evidence that underpricing is positively related to the expected post-IPO liquidity of the issuer. Using two regulation changes as exogenous shocks to share liquidity before and after an IPO, we show that underpricing is more pronounced with better expected post-IPO liquidity or lower pre-IPO liquidity.

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更大的蛋糕，更大的份额：流动性、价值增值和ipo定价过低

由于投资者的参与对IPO的成功至关重要，我们假设发行人与IPO投资者分享IPO的价值收益，从而导致IPO定价过低。我们从流动性的角度检验了价值增值与定价过低之间的正相关关系，因为通过IPO改善流动性增加了公司价值。我们发现支持性证据表明，定价过低与发行人ipo后的预期流动性呈正相关。我们将两次监管变化作为IPO前后股票流动性的外生冲击，结果表明，在预期IPO后流动性更好或IPO前流动性更低的情况下，股价过低更为明显。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Financial Markets BUSINESS, FINANCE-

CiteScore

3.40

自引率

3.60%

发文量

期刊介绍： The Journal of Financial Markets publishes high quality original research on applied and theoretical issues related to securities trading and pricing. Area of coverage includes the analysis and design of trading mechanisms, optimal order placement strategies, the role of information in securities markets, financial intermediation as it relates to securities investments - for example, the structure of brokerage and mutual fund industries, and analyses of short and long run horizon price behaviour. The journal strives to maintain a balance between theoretical and empirical work, and aims to provide prompt and constructive reviews to paper submitters.