Litigation risk, strategic disclosure and the underpricing of initial public offerings

被引：134

作者：

Hanley, Kathleen Weiss ^{[2
]}

Hoberg, Gerard ^{[1
]}

机构：

[1] Univ Maryland, Robert H Smith Sch Business, College Pk, MD 20742 USA

[2] US Secur & Exchange Commiss, Washington, DC 20549 USA

来源：

JOURNAL OF FINANCIAL ECONOMICS | 2012年 / 103卷 / 02期

关键词：

Litigation risk; Initial public offerings; Initial returns; Partial adjustment; Strategic disclosure; SHAREHOLDER LITIGATION; PARTIAL ADJUSTMENT; CAPITAL-MARKETS; IPO; INFORMATION; ALLOCATION; INTERMEDIATION;

D O I：

10.1016/j.jfineco.2011.09.006

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Using word content analysis on the time-series of IPO prospectuses, we show that issuers tradeoff underpricing and strategic disclosure as potential hedges against litigation risk. This tradeoff explains a significant fraction of the variation in prospectus revision patterns, IPO underpricing, the partial adjustment phenomenon, and litigation outcomes. We find that strong disclosure is an effective hedge against all types of lawsuits. Underpricing, however, is an effective hedge only against Section 11 lawsuits, those lawsuits which are most damaging to the underwriter. Underwriters who fail to adequately hedge litigation risk experience economically large penalties, including loss of market share. (C) 2011 Elsevier B.V. All rights reserved.

引用

页码：235 / 254

页数：20

共 50 条

[41] A little Birdie told me: Social media, organizational legitimacy, and underpricing in initial public offerings [J].

Lundmark, Leif W. ;

Oh, Chong ;

Verhaal, J. Cameron .

INFORMATION SYSTEMS FRONTIERS, 2017, 19 (06) :1407-1422

[42] Underpricing, Risk Management, Hot Issue and Crowding out Effects: Evidence From the Australian Resources Sector Initial Public Offerings [J].

Nguyen, Hoa ;

Dimovski, William ;

Brooks, Robert .

REVIEW OF PACIFIC BASIN FINANCIAL MARKETS AND POLICIES, 2010, 13 (03) :333-361

[43] Management Disclosures of Going Concern Uncertainties: The Case of Initial Public Offerings [J].

Bochkay, Khrystyna ;

Chychyla, Roman ;

Sankaraguruswamy, Srini ;

Willenborg, Michael .

ACCOUNTING REVIEW, 2018, 93 (06) :29-59

[44] Underpricing in the cryptocurrency world: evidence from initial coin offerings [J].

Felix, Thomas Heine ;

von Eije, Henk .

MANAGERIAL FINANCE, 2019, 45 (04) :563-578

[45] Preopening auctions and price discovery in initial public offerings [J].

Bhurjee, Keerat ;

Ramanna, Vishwanatha Saragur .

JOURNAL OF BANKING & FINANCE, 2024, 165

[46] Initial Public Offerings Chinese Style [J].

Qian, Yiming ;

Ritter, Jay R. ;

Shao, Xinjian .

JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2024, 59 (01) :1-38

[47] The underpricing and excess returns of initial public offerings in Taiwan based on noisy trading: A stochastic frontier model [J].

Chen A. ;

Hung C.C. ;

Wu C.-S. .

Review of Quantitative Finance and Accounting, 2002, 18 (2) :139-159

[48] Economic effects of litigation risk on corporate disclosure and innovation [J].

Schantl, Stefan F. ;

Wagenhofer, Alfred .

REVIEW OF ACCOUNTING STUDIES, 2024, 29 (04) :3328-3368

[49] Venture capital financing, strategic alliances, and the initial public offerings of Internet startups [J].

Chang, SJ .

JOURNAL OF BUSINESS VENTURING, 2004, 19 (05) :721-741

[50] Exploring corporate risk transparency: Corporate risk disclosure and the interplay of corporate reputation, corporate trust and media usage in initial public Offerings [J].

Suk-Chong Tong .

Corporate Reputation Review, 2013, 16 (2) :131-149

← 1 2 3 4 5 →