مشخصات پژوهش

عنوان	Institutional Explanations Theory as Factors Affecting Underpricing of (Initial Public Offerings (IPOs
نوع پژوهش	مقاله چاپ‌شده در مجلات علمی
کلیدواژه‌ها	Initial Public Offerings (IPOs), Underpricing, Institutional Explanation Theory, Legal Liability, Price Stabilization, Tax Arguments
چکیده	This paper reviews institutional explanations theory as a factor affecting underpricing of Initial Public Offerings (IPOs). There are three different aspects related to the models based on institutional and legal framework of IPO and features of the marketplace: Litigation, Investment Banks’ price stabilization activities once trading starts, and Taxes. Firms use underpricing to reduce expected legal liabilities and possible lawsuit costs after the IPO. Legal and institutional arrangements may also influence the pricing processes. In Price stabilization, shares are purchased by the underwriters to increase the aftermarket share price. It also allows them to disguise overpriced offerings from investors by temporarily inflating the stock price, thereby arresting the speed at which the prices deflate in the market. In this exercise the most important beneficiaries are the institutional investors who participate in the book-building process. It has also been proved that underwriters are more active in aftermarket activities for less risky IPOs. Taxation is another factor identified by the theory based on institutional and legal aspects of IPO.
پژوهشگران	پرفسور شاراد ال. جوشی (نفر دوم)، پرستو صداقت (نفر اول)