Valuation of IPOs with Negative Earnings

摘要: IPO firms are new to the market and presumably more opaque than other public companies. Determining value of these is challenging even difficult when earnings negative. I U.S. IPOs between 1994 2013 especially with negative using a variety different novel techniques. The results suggest that income valued higher firms. These valuations in large part due increased marketing efforts venture capitalists underwriters. findings show underwriters have power generate high investor perception create demand, which boosts valuation. high-valued tend underperform long-run as valuation premia converge toward peer levels. Due levels uncertainty overconfidence, seem be exposed hype IPOs.