Information Collection and IPO Underpricing

摘要: This study provides new evidence that IPO underpricing is economic rents paid for investor to gather costly information. Subrahmanyam and Titman (1999) report diverse information, once aggregated in the public market, could provide a more informative stock price accurate feedback firm’s investment decision. I investigate hypothesis as be higher, when information diverse. In support of this hypothesis, find positive significant correlation between extent diversity measure proposed by Barron et al. (1998). There an subsequent (absolute) change capital R&D expenditures. addition, firms with high exhibit better return performance than low investment. consistent proposition serves useful managers market.