Does Bookbuilding Improve the IPO Pricing Efficiency?--An Information-based Perspective

摘要：

This article investigate the pricing efficiency of initial public offerings (IPOs) for bookbuilding IPOs in China. Different from other works that discussing IPOs pricing efficiency focus on the initial underpricing of IPOs, we use the sample of IPOs in China from 2001 to 2008, providing a new perspective of the level capitalization of firm-specific information to examine the pricing efficiency. We find a significant positive relation between the degree of firm-specific information capitalized into price and the level of initial underpricing for bookbuilding IPOs. Additionally, there is no such significant relation for non-bookbuilding IPOs. The clear preponderance of the evidence suggests that bookbuilding makes the pricing of IPOs more informative, and the participation of institutional investors plays an important role in value discovery. This result is robust in multivariate analysis, where we control for other factors believed to influence underpricing.

关键词： initial public offerings bookbuilding underpricing pricing efficiency

作者: Zou bin Xia xinping

作者单位: School of Management, Huazhong University of Science and Technology, Wuhan, 430074, China

会议类型: 国际会议

会议名称: 第八届武汉电子商务国际会议(The Eighth Wuhan International Conference on E-Business)

会议地点: 武汉

会议语种:英文

页码: 2301-2306

在线出版日期: 2009-05-30（万方平台首次上网日期，不代表论文的发表时间）