UK IPO underpricing and venture capitalists

作者：Coakley Jerry; Hadass Leon; Wood Andrew^*

来源：The European Journal of Finance, 2009, 15(4): 421-435.

DOI：10.1080/13518470802560915

• IPO underpricing
• venture capital
• certification hypothesis
• spinning

We analyze the nature and causes of short-run underpricing for a unique sample of 591 Initial Public Offers (IPOs) issued on the London Stock Exchange for the period 1985-2003. We find significant differences between the 1998-2000 bubble years and the rest of the sample. Venture capitalists and reputable underwriters played a certification role in the latter period but not during the bubble years. These years featured significant increases in underpricing, money left on the table, and a decline in operating quality. The combination of venture capitalists and prestigious underwriters was increasingly associated with the highest underpricing witnessed during 1998-2000, which provides indirect support for the spinning hypothesis.

• 出版日期2009