Auctions versus bookbuilding: The effects of IPO regulation in Japan
Journal
The Financial Review
ISSN
0732-8516
Type
journal article
Date Issued
2023
Author(s)
Abstract (De)
We analyze a regulatory change in the Japanese IPO market that created an abrupt shift from hybrid price-discriminatory auctions to bookbuilding. We find that bookbuilding leads to higher underpricing than hybrid price-discriminatory auctions. Furthermore, we find evidence that price accuracy tends to be higher for auctions than for bookbuilding. The results hold under a variety of OLS specifications and with regression discontinuity designs exploiting the abrupt change of the regulation.
Language
English
Keywords
auction
bookbuilding
initial public offering
IPO regulation
HSG Classification
contribution to scientific community
HSG Profile Area
SOF - System-wide Risk in the Financial System
Refereed
Yes
Publisher
Blackwell
Volume
58
Start page
117
End page
141
Pages
25
Eprints ID
269645
File(s)![Thumbnail Image]()
open.access
Name
Lehmann Weber 2023 Auctions versus bookbuilding The effects of IPO regulation in Japan.pdf
Size
1.29 MB
Format
Adobe PDF
Checksum (MD5)
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