Under-Diversification and Retention Commitments in IPOs

Lucie Courteau

77 citations0/0 files storedJournal of Financial and Quantitative Analysis

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Financial Markets and Investment Strategies Private Equity and Venture Capital

Abstract

This study is an extension of Leland and Pyle's (1977) signaling model. It introduces, in addition to the retained ownership, the length of the holding period to which the owner commits in the prospectus as a signal of firm value. The length of the holding period is found to be a signaling mechanism that complements ownership retention. Depending on the information structure of the firm, the entrepreneur may prefer to commit to a holding period longer than the minimum required by securities regulations.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 77 citations exist upstream.

References

1977INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATION 1987Signaling Games and Stable Equilibria 1989Signalling by underpricing in the IPO market 1986On the Strategic Stability of Equilibria 1989Seasoned Offerings, Imitation Costs, and the Underpricing of Initial Public Offerings 1986Information quality and the valuation of new issues 1989Signalling and the Pricing of New Issues 1987Equilibrium Selection in Signaling Games

Cited by

2002Concealing and confounding adverse signals: insider wealth-maximizing behavior in the IPO process 2014The influence of lock-up provisions on IPO initial returns: Evidence from an emerging market 2011Information Discovery in Share Lockups: Evidence from the Split‐Share Structure Reform in China 2016A Comparative Analysis of Real and Accrual Earnings Management around Initial Public Offerings under Different Regulatory Environments 2016Early-stage entrepreneurial financing: A signaling perspective

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.