Risk disclosure in IPO advertisement and the quality of the firm

被引：3
|
作者：
Katti, Supriya [1 ]
Lawrence, Edward R. [2 ]
Raithatha, Mehul [3 ]
机构：
[1] Indian Inst Technol, Dept IME Bldg, Kanpur, India
[2] Florida Int Univ, Coll Business Adm, Dept Finance, RB 239A, Miami, FL 33199 USA
[3] Indian Inst Management, Finance & Accounting Area, Indore, India
来源：
JOURNAL OF FINANCIAL MARKETS | 2023年 / 64卷
关键词：
IPO; Risk disclosures; Quality of firm; Underpricing; IPO subscription; INITIAL RETURNS; INFORMATION; AUCTIONS; SENTIMENT; CONSERVATISM; OFFERINGS; REVISIONS; INVESTORS; PRICE;
D O I：
10.1016/j.finmar.2022.100789
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We compare the IPO issuing firms in India that disclose risk in their advertisements with the firms that do not disclose such risks and find 31% higher underpricing in firms that disclose risk. For the risk disclosing firms, we find a significantly higher subscription from institutional investors. The difference in the subscription from retail investors for the two groups of firms is insignificant. The firms that disclose risk in their ads have superior performance in the post IPO period as compared to the firms that do not disclose such risk.
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页数：18
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