Khurshed, A, Kostas, D, Mohamed, A et al. (1 more author) (2018) Initial public offerings on the UK when-issued market. Journal of Corporate Finance, 49. pp. 1-14. ISSN 0929-1199
Abstract
We examine the determinants of an IPO firm's decision to trade on a when-issued market and find that better quality firms are more likely to trade on this market. Our ‘what-if’ analysis shows that for companies that choose to have when-issued trading, the actual offer price is almost 26% higher than it would have been had these firms chosen not to trade on this market. We interpret this higher offer price as a ‘rent’ that investors pay to acquire shares of such companies. We also show that the informational accuracy of the UK when-issued market is better than that of continental European when-issued markets.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | Crown Copyright © 2018 Published by Elsevier B.V. This is an author produced version of a paper published in the Journal of Corporate Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | IPOs; When-issued market; Grey market; Rent; Retail investors; London Stock Exchange |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 20 Jun 2019 13:36 |
Last Modified: | 28 Jun 2019 12:36 |
Status: | Published |
Identification Number: | 10.1016/j.jcorpfin.2017.12.018 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:147566 |