Why Don't Issuers Choose IPO Auctions? The Complexity of Indirect Mechanisms
---- Acknowledgements -----
We thank Reena Aggarwal, Larry Ausubel, Robert Battalio, Lise Buyer, Harry DeAngelo, Ken French, Robert S. Hansen, Alexander Ljungqvist, Tim Loughran, Paul Milgrom, Ivan Png, Ed Prescott, Jay Ritter, Michael Sher, Sheridan Titman, and S. Viswanathan for useful comments; Rakesh Vohra for hepful discussions about auctions; Gjergji Cici, Huijing Fu, Jintana Kumeranakerd, Tim Lavelle, David Paredes, Mariya Todarova, and Andrew Y. C. Wong for research assistance; and M.J. van den Assem, Marc Goergen, Geeta Hemrajani, Richard Pettway, Jhinyoung Shin, John Wei and the many officials at various stock exchanges, regulatory agencies and research institutes for help in gathering the information used in this study (especially the Singapore Exchange, Istanbul Stock Exchange and Euronext). Some of the material in Table 2 circulated in an earlier working paper titled Global Trends in IPO Methods: Book Building vs. Auctions. Any inaccuracies or errors are, of course, entirely our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.