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The Choice between Firm-Commitment and Best-Efforts Offering Methods in IPOs: The Effect of Unsuccessful Offers

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  • Dunbar, Craig G.

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  • Dunbar, Craig G., 1998. "The Choice between Firm-Commitment and Best-Efforts Offering Methods in IPOs: The Effect of Unsuccessful Offers," Journal of Financial Intermediation, Elsevier, vol. 7(1), pages 60-90, January.
    • Handle: RePEc:eee:jfinin:v:7:y:1998:i:1:p:60-90
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    1. Tinic, Seha M, 1988. " Anatomy of Initial Public Offerings of Common Stock," Journal of Finance, American Finance Association, vol. 43(4), pages 789-822, September.
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    9. Welch, Ivo, 1991. "An Empirical Examination of Models of Contract Choice in Initial Public Offerings," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 26(4), pages 497-518, December.
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    13. Handley, Kathleen Weiss & Lee, Charles M. C. & Seguin, Paul L., 1996. "The Marketing of Closed-end Fund IPOs: Evidence from Transactions Data," Journal of Financial Intermediation, Elsevier, vol. 5(2), pages 127-159, April.
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    21. James, Christopher, 1992. "Relationship-Specific Assets and the Pricing of Underwriter Services," Journal of Finance, American Finance Association, vol. 47(5), pages 1865-1885, December.
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    23. Barry, Christopher B. & Muscarella, Chris J. & Vetsuypens, Michael R., 1991. "Underwriter warrants, underwriter compensation, and the costs of going public," Journal of Financial Economics, Elsevier, vol. 29(1), pages 113-135, March.
    24. Sherman, Ann Guenther, 1992. "The Pricing of Best Efforts New Issues," Journal of Finance, American Finance Association, vol. 47(2), pages 781-790, June.
    25. Beatty, Randolph P & Welch, Ivo, 1996. "Issuer Expenses and Legal Liability in Initial Public Offerings," Journal of Law and Economics, University of Chicago Press, vol. 39(2), pages 545-602, October.
    26. Hanley, Kathleen Weiss & Kumar, A. Arun & Seguin, Paul J., 1993. "Price stabilization in the market for new issues," Journal of Financial Economics, Elsevier, vol. 34(2), pages 177-197, October.
    27. Chua, Lena, 1995. "A Reexamination of the Costs of Firm Commitment and Best Efforts IPOs," The Financial Review, Eastern Finance Association, vol. 30(2), pages 337-365, May.
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    29. Lerner, Joshua, 1994. "Venture capitalists and the decision to go public," Journal of Financial Economics, Elsevier, vol. 35(3), pages 293-316, June.
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    Cited by:

    1. Hanley, Kathleen Weiss & Hoberg, Gerard, 2012. "Litigation risk, strategic disclosure and the underpricing of initial public offerings," Journal of Financial Economics, Elsevier, vol. 103(2), pages 235-254.
    2. Akron, Sagi & Samdani, Taufique, 2017. "Investor protection and institutional investors’ incentive for information production," Journal of Financial Stability, Elsevier, vol. 30(C), pages 1-15.
    3. Helbing, Pia, 2019. "A review on IPO withdrawal," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 200-208.
    4. Busaba, Walid Y., 2006. "Bookbuilding, the option to withdraw, and the timing of IPOs," Journal of Corporate Finance, Elsevier, vol. 12(2), pages 159-186, January.
    5. Reiff, Annika & Tykvová, Tereza, 2021. "IPO withdrawals: Are corporate governance and VC characteristics the guiding light in the rough sea of volatile markets?," Journal of Corporate Finance, Elsevier, vol. 67(C).
    6. Jones, Steven L. & Yeoman, John C., 2014. "Initial uncertainty and the risk of setting a fixed-offer price: Implications for the pricing of bookbuilt and best-efforts IPOs," Journal of Corporate Finance, Elsevier, vol. 27(C), pages 194-215.
    7. Cooney, John W. & Moeller, Thomas & Stegemoller, Mike, 2009. "The underpricing of private targets," Journal of Financial Economics, Elsevier, vol. 93(1), pages 51-66, July.
    8. Harris, Oneil & Madura, Jeff, 2011. "Why are proposed spinoffs withdrawn?," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(1), pages 69-81, February.
    9. Vithanage, Kulunu & Neupane, Suman & Chung, Richard, 2016. "Multiple lead underwriting syndicate and IPO pricing," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 193-208.
    10. Hsuan-Chi Chen & Sheng-Ching Wu, 2015. "Who Makes the Choice on IPO Underwriting Methods? Issuers Versus Underwriters," Financial Management, Financial Management Association International, vol. 44(4), pages 753-783, October.
    11. Dunbar, Craig G. & Foerster, Stephen R., 2008. "Second time lucky? Withdrawn IPOs that return to the market," Journal of Financial Economics, Elsevier, vol. 87(3), pages 610-635, March.
    12. Amaya, Diego & Filbien, Jean-Yves & Kooli, Maher, 2022. "Media coverage and the decision to withdraw an IPO," International Review of Financial Analysis, Elsevier, vol. 84(C).
    13. Lawrence M. Benveniste & Alexander Ljungqvist & William J. Wilhelm & Xiaoyun Yu, 2003. "Evidence of Information Spillovers in the Production of Investment Banking Services," Journal of Finance, American Finance Association, vol. 58(2), pages 577-608, April.
    14. Heewon Chae & Jaeyong Song & Donald Lange, 2021. "Basking in reflected glory: Reverse status transfer from foreign to home markets," Strategic Management Journal, Wiley Blackwell, vol. 42(4), pages 802-832, April.
    15. Michelle Lowry & G. William Schwert, 2002. "IPO Market Cycles: Bubbles or Sequential Learning?," Journal of Finance, American Finance Association, vol. 57(3), pages 1171-1200, June.
    16. Sigrid Vandemaele, 2003. "Choice of Selling Mechanism at the IPO: the Case of the French Second Market," European Financial Management, European Financial Management Association, vol. 9(4), pages 435-455, December.
    17. Helbing, Pia & Lucey, Brian M. & Vigne, Samuel A., 2019. "The determinants of IPO withdrawal – Evidence from Europe," Journal of Corporate Finance, Elsevier, vol. 56(C), pages 415-436.
    18. Dambra, Michael & Field, Laura Casares & Gustafson, Matthew T., 2015. "The JOBS Act and IPO volume: Evidence that disclosure costs affect the IPO decision," Journal of Financial Economics, Elsevier, vol. 116(1), pages 121-143.
    19. Leite, Tore, 2006. "Bookbuilding with heterogeneous investors," Journal of Financial Intermediation, Elsevier, vol. 15(2), pages 235-253, April.
    20. Gilberto Loureiro, 2010. "The market for ADRs: does depositary bank reputation matter?," Applied Financial Economics, Taylor & Francis Journals, vol. 20(10), pages 811-825.
    21. Çolak, Gönül & Günay, Hikmet, 2011. "Strategic waiting in the IPO markets," Journal of Corporate Finance, Elsevier, vol. 17(3), pages 555-583, June.
    22. Boeh, Kevin & Dunbar, Craig, 2014. "IPO waves and the issuance process," Journal of Corporate Finance, Elsevier, vol. 25(C), pages 455-473.
    23. Li, Hui & Liu, Hong & Siganos, Antonios & Zhou, Mingming, 2016. "Bank regulation, financial crisis, and the announcement effects of seasoned equity offerings of US commercial banks," Journal of Financial Stability, Elsevier, vol. 25(C), pages 37-46.
    24. Salim Chahine & Gonul Colak & Iftekhar Hasan & Mohamad Mazboudi, 2020. "Investor relations and IPO performance," Review of Accounting Studies, Springer, vol. 25(2), pages 474-512, June.

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