Law firms as reputational intermediaries and the effect on US-bound first offer IPO underpricing
Author
Source
Arab Journal of Administrative Sciences
Issue
Vol. 22, Issue 1 (31 Jan. 2015), pp.73-90, 18 p.
Publisher
Kuwait University Academic Publication Council
Publication Date
2015-01-31
Country of Publication
Kuwait
No. of Pages
18
Main Subjects
Banking and Financial Sciences
Topics
Abstract EN
There is information asymmetry between the investment banks that act as underwriters of a first-issue initial public offering (IPO) from outside the U.S.
and the subsequent investors.
Accordingly, the issued stock can suffer from "underpricing" and fail to maximize potential proceeds of the IPO.
The empirical analysis set forth in this paper finds that law firms can act as reputational intermediaries to provide signals of value.
Prestigious law firms that represent investment banks are found to reduce underpricing, while the prestige of the law firms representing the issuer can increase underpricing depending on the nation of domicile for the firms.
American Psychological Association (APA)
Quttainah, Majdi A.& Paczkowski, William. 2015. Law firms as reputational intermediaries and the effect on US-bound first offer IPO underpricing. Arab Journal of Administrative Sciences،Vol. 22, no. 1, pp.73-90.
https://search.emarefa.net/detail/BIM-814031
Modern Language Association (MLA)
Quttainah, Majdi A.& Paczkowski, William. Law firms as reputational intermediaries and the effect on US-bound first offer IPO underpricing. Arab Journal of Administrative Sciences Vol. 22, no. 1 (Jan. 2015), pp.73-90.
https://search.emarefa.net/detail/BIM-814031
American Medical Association (AMA)
Quttainah, Majdi A.& Paczkowski, William. Law firms as reputational intermediaries and the effect on US-bound first offer IPO underpricing. Arab Journal of Administrative Sciences. 2015. Vol. 22, no. 1, pp.73-90.
https://search.emarefa.net/detail/BIM-814031
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 89
Record ID
BIM-814031