Litigation risk and IPO underpricing

被引：261
|
作者：
Lowry, M
Shu, S [1 ]
机构：
[1] Boston Coll, Carroll Sch Management, Chestnut Hill, MA 02467 USA
[2] Penn State Univ, Smeal Coll Business, University Pk, PA 16802 USA
来源：
JOURNAL OF FINANCIAL ECONOMICS | 2002年 / 65卷 / 03期
关键词：
initial public offering; IPO underpricing; securities litigation; endogeneity;
D O I：
10.1016/S0304-405X(02)00144-7
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examine the relation between risk and IPO underpricing and test two aspects of the litigation-risk hypothesis: (1) firms with higher litigation risk underprice their IPOs by a greater amount as a form of insurance (insurance effect) and (2) higher underpricing lowers expected litigation costs (deterrence effect). To adjust for the endogeneity bias in previous studies, we use a simultaneous equation framework. Evidence provides support for both aspects of the litigation-risk hypothesis. (C) 2002 Elsevier Science Ltd. All rights reserved.
引用
收藏
页码：309 / 335
页数：27
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