PT  - JOURNAL ARTICLE
AU  - Craig S. Galbraith
AU  - Alex F. De Noble
AU  - Curt H. Stiles
AU  - Gregory B. Merrill
TI  - Offering Prospectuses,Competitive Strategies, and the Pricing of Initial Public Offerings
AID  - 10.3905/jpe.2003.320054
DP  - 2003 Aug 31
TA  - The Journal of Private Equity
PG  - 31--37
VI  - 6
IP  - 4
4099  - https://pm-research.com/content/6/4/31.short
4100  - https://pm-research.com/content/6/4/31.full
AB  - We explore the relationship between the strategic information in an IPO prospectus and the firm's post-IPO pricing. Based upon a content analysis of 39 business to consumer (B2C) and 25 business to business (B2B) “dot.com” initial public offerings, several conclusions were reached. First, e-commerce firms showed dramatic short‐term underpricing and long-term underperformance. Second, we found strong support that the strategic information contained in the firm's prospectus affects post-IPO pricing, and is incorporated in both the initial day and long-term market-adjusted stock prices. And third, we found that the reputation of the firm's underwriter had little correlation with a firm's post-IPO pricing success.