RT Journal Article
SR Electronic
T1 Offering Prospectuses,Competitive Strategies, and the Pricing of Initial Public Offerings
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 31
OP 37
DO 10.3905/jpe.2003.320054
VO 6
IS 4
A1 Craig S. Galbraith
A1 Alex F. De Noble
A1 Curt H. Stiles
A1 Gregory B. Merrill
YR 2003
UL https://pm-research.com/content/6/4/31.abstract
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.