Litigation risk and IPO underpricing

被引：268

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

页码：309 / 335

页数：27

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