TY  - JOUR
AU  - Shiller,Robert J.
TI  - Initial Public Offerings:  Investor Behavior and Underpricing
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2806
PY  - 1989
Y2  - March 1989
UR  - http://www.nber.org/papers/w2806
L1  - http://www.nber.org/papers/w2806.pdf
N1  - Author contact info:
Robert J. Shiller
Yale University, Cowles Foundation
Box 208281
30 Hillhouse Avenue
New Haven, CT  06520-8281
Tel: 203/432-3708
Fax: 203/432-6167
E-Mail: robert.shiller@yale.edu
M2  - featured in NBER digest on 1989-03-01
AB  - A questionnaire survey of investors in initial public offerings (IPO's) was undertaken to learn about patterns of investor behavior that might be relevant to theories of their underpricing. Respondents were asked for their perception of the allocation process, their concern with stockbroker or underwriter reputation, their theories of IPO underpricing, and their communications and information sources. Results are interpreted as supporting the notion that there is an element of truth in some existing theories of IPO underpricing. and also suggesting different hypotheses. The impresario hypothesis is that underwriters deliberately underprice to obtain publicity and promote enthusiasm. Other hypotheses suggested by the results are an investor risk perception hypothesis and a fairness-relationship hypothesis.
ER  -