Putable common stock

详细信息    查看全文

• 作者：Cantale ; Salvatore ; Russino ; Annalisa
• 关键词：Underpricing ; Finance ; Instruments ; G3 ; IPOs ; Security design ; Underpricing
• 刊名：Journal of Corporate Finance
• 出版年：2004
• 出版时间：November, 2004
• 年：2004
• 卷：10
• 期：5
• 页码：753-775
• 全文大小：242 K

文摘

The underpricing of initial public offerings is a well-documented phenomenon in the financial literature. The purpose of this paper is to show how this empirical regularity could be solved by an appropriate choice of financing instruments, namely, by an intelligent mix of common stocks and put options. The latter additional instrument, modeled in this paper as a lump sum paid by insiders of the firm to outsiders, helps alleviate the asymmetry of information existing between insiders and outsiders of the corporation, allowing good firms to sell the package they offer at the full information value.