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dc.contributor.author Parlane, Sarah
dc.contributor.author Rousseau, Fabrice en
dc.date.accessioned 2007-10-01T09:28:02Z
dc.date.available 2007-10-01T09:28:02Z
dc.date.issued 2007-05
dc.identifier.uri http://hdl.handle.net/10197/41
dc.description.abstract We characterize optimal IPO design in the presence of distinct adverse selection problems: one affecting the IPO stage and one arising in the after-market. Allocating shares to an investor with superior information in the after-market depresses the share’s value to less informed investors. However, because it facilitates truthful interest report at the IPO stage it increases the expected offer price provided disadvantaged investors are suffciently unlikely to flip their share. We compare the book-building's outcome to that of uniform price auction. The auction can enhance the expected offer price only if it systematically allocates a share to the strategic trader. en
dc.format.extent 189908 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin; School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research working paper series 2007 en
dc.relation.ispartofseries WP07/06 en
dc.subject Initial Public Offer
dc.subject Book-building
dc.subject Auction
dc.subject Informed trading
dc.subject Dealer market
dc.subject.classification G32 en
dc.subject.classification G24 en
dc.subject.lcsh Going public en
dc.subject.lcsh Securities en
dc.subject.lcsh Secondary market en
dc.title Optimal IPO design with informed trading en
dc.type Working Paper en
dc.internal.authorurl Sarah Parlane (web page) en
dc.internal.authorurl http://www.ucd.ie/economics/staff/sparlane/INDEX.HTM en
dc.internal.authorcontactother Email: sarah.parlane@ucd.ie; Tel: +353 1 7168677 en
dc.internal.authorid UCD0019 en
dc.internal.availability Full text available en
dc.status Not peer reviewed en
dc.neeo.contributor Parlane|Sarah|aut|UCD0019
dc.neeo.contributor Rousseau|Fabrice|aut|


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