Credit ratings and IPO pricing

被引：83

作者：

Ana, Heng ^{[1
]}

Chan, Kam C. ^{[2
]}

机构：

[1] Univ S Dakota, Beacom Sch Business, Vermillion, SD 57069 USA

[2] Western Kentucky Univ, Gordon Ford Coll Business, Bowling Green, KY 42101 USA

来源：

JOURNAL OF CORPORATE FINANCE | 2008年 / 14卷 / 05期

关键词：

IPO underpricing; Price revision; Credit rating; Information asymmetry; Selection bias;

D O I：

10.1016/j.jcorpfin.2008.09.010

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine the effects of credit ratings on IPO pricing. The evidence from U.S. common share IPOs during 1986-2004 shows that when firms go public, those with credit ratings are underpriced significantly less than firms without credit ratings. Credit rating levels, however, do not have a significant effect on IPO underpricing. The existence of credit rating reduces uncertainty about firm value. It is the value certainty that matters, not the value per se. Credit ratings also reduce the degree of price revision during the bookbuilding process and the aftermarket volatility in the post-IPO period. The evidence suggests that credit ratings convey useful information in reducing value uncertainty of the issuing firms as well as information asymmetry in the IPO markets. (C) 2008 Elsevier B.V. All rights reserved.

引用

页码：584 / 595

页数：12