Market Making Contracts, Firm Value, and the IPO Decision

被引：35
|
作者：
Bessembinder, Hendrik [1 ,2 ]
Hao, Jia [3 ]
Zheng, Kuncheng [4 ]
机构：
[1] Arizona State Univ, Tempe, AZ 85287 USA
[2] Univ Utah, Salt Lake City, UT 84112 USA
[3] Chinese Univ Hong Kong, Hong Kong, Peoples R China
[4] Northeastern Univ, Boston, MA USA
来源：
JOURNAL OF FINANCE | 2015年 / 70卷 / 05期
关键词：
INFORMED TRADERS; LIQUIDITY; SPECIALIST; AFTERMARKET; ORDERS; STOCKS; MAKER; ASK;
D O I：
10.1111/jofi.12285
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examine the effects of secondary market liquidity on firm value and the IPO decision. Competitive aftermarket liquidity provision is associated with reduced welfare and a discounted secondary market price that can dissuade IPOs. The competitive market fails in particular for firms or at times when uncertainty regarding fundamental value and asymmetric information are large in combination. In these cases, firm value and welfare are improved by a contract where the firm engages a designated market maker to enhance liquidity. Such contracts represent a market solution to a market imperfection, particularly for small, growth firms.
引用
收藏
页码：1997 / 2028
页数：32
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