Ownership Structure and IPO Underpricing

Research output: Contribution to journalArticle (Academic Journal)

19 Citations (Scopus)

Abstract

Stoughton and Zechner (1998) and Brennan and Franks (1997) argue that underpricing can be employed to determine post IPO ownership structure, and thereby to influence monitoring and/or control of the company post issue. This paper employs unique data relating to shareholdings of firms listing on the London Stock Exchange, and provides compelling evidence that IPO underpricing does not arise from efforts to determine the ownership structure of the post IPO firm. It is suggested that research is directed elsewhere to find an answer to the underpricing phenomenon, and for means other than IPO underpricing to affect post IPO ownership structure.
Original languageEnglish
Pages (from-to)102 - 126
Number of pages25
JournalJournal of Business Finance and Accounting
Volume33 (1-2)
DOIs
Publication statusPublished - Jan 2006

Bibliographical note

Publisher: Blackwell

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