Nber Working Paper Series Why Don't Issuers Choose
NBER WORKING PAPER SERIES WHY DON'T ISSUERS CHOOSE IPO AUCTIONS? THE COMPLEXITY OF INDIRECT MECHANISMS Ravi Jagannathan Andrei Jirnyi Ann Sherman Working Paper 16214 http://www.nber.org/papers/w16214 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 July 2010 We thank Reena Aggarwal, Larry Ausubel, Robert Battalio, Lise Buyer, Harry DeAngelo, Ken French, Robert S. Hansen, Alexander Ljungqvist, Tim Loughran, Paul Milgrom, Ivan Png, Ed Prescott, Jay Ritter, Michael Sher, Sheridan Titman, and S. Viswanathan for useful comments; Rakesh Vohra for hepful discussions about auctions; Gjergji Cici, Huijing Fu, Jintana Kumeranakerd, Tim Lavelle, David Paredes, Mariya Todarova, and Andrew Y. C. Wong for research assistance; and M.J. van den Assem, Marc Goergen, Geeta Hemrajani, Richard Pettway, Jhinyoung Shin, John Wei and the many officials at various stock exchanges, regulatory agencies and research institutes for help in gathering the information used in this study (especially the Singapore Exchange, Istanbul Stock Exchange and Euronext). Some of the material in Table 2 circulated in an earlier working paper titled Global Trends in IPO Methods: Book Building vs. Auctions. Any inaccuracies or errors are, of course, entirely our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2010 by Ravi Jagannathan, Andrei Jirnyi, and Ann Sherman. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source.
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