Underwriter Collusion and IPO Pricing

摘要：

We develop a dynamic model with complete information to study IPO pricing. The model predicts tacit collusion among underwriters and endogenously generates: (1) IPO underpricing; (2) the fluctuation of IPO volume; (3) the time-variation of underpricing in hot and cold markets. In addition, the model helps to explain (1) the severe underpricing during the period of 1999-2000; (2) the highly concentrated structure of IPO underwriting market; (3) the increasing frequency of IPO syndications in recent years. We present evidence of possible collusion among underwriters and provide new empirical evidence on IPO market cycles in support of the model.

作者: Fangjian Fu Erica X.N. Li

作者单位: Singapore Management University University of Michigan

会议类型: 国际会议

会议名称: 2008年中国金融国际年会

会议地点: 大连

会议语种:英文

页码: 1-40

在线出版日期: 2008-07-02（万方平台首次上网日期，不代表论文的发表时间）