Article ID Journal Published Year Pages File Type
11023394 Economics Letters 2018 10 Pages PDF
Abstract
Using text analysis, we investigate the impact of the length of prospectuses on IPO pricing for a sample of UK Fixed Priced IPOs between 2004 and 2012 and show more information in the prospectus improves price accuracy as longer admission documents exhibit higher offer price and less underpricing. We explain the effect on the offer price as the consequence of the “pilot fishing” stage which seems to characterize a lot of UK IPOs.
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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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The role of admission documents on the pricing of UK fixed priced IPOs
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