In contrast to prior studies suggesting that overallotment option (OAO) provisions reflect underwriters' exploitation of IPO firms, we provide evidence that issuers benefit in several ways. We estimate that OAO provisions lead to lower total issue cost, less negative post-IPO performance, lower pos...
IPO pricingUnderpricingIn contrast to prior studies suggesting that overallotment option (OAO) provisions reflect underwriters' exploitation of IPO firms, we provide evidence that theJiao, YawenKutsuna, KenjiSmith, Richard L.Social Science Electronic Publishing...
IPO pricingUnderpricingIn contrast to prior studies suggesting that overallotment option (OAO) provisions reflect underwriters' exploitation of IPO firms, we provide evidence that issuers benefit in several ways. We estimate that OAO provisions lead to lower total issue cost, less negative post-IPO ...