Law Firms as Reputational Intermediaries and the Effect on US Bound First Offer IPO Underpricing

Majdi A.  Quttainah; William Paczkowski

Article Details

Law Firms as Reputational Intermediaries and the Effect on US Bound First Offer IPO Underpricing

Authors:

Majdi A. Quttainah | William Paczkowski

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.22 Issue 1, pp.73-90

Document Type:

Article

Publication Date:

1/2015

Document Language:

English

Document ID (Org No.):

2001943656

pISSN:

2957-3521

Keywords:

Abstract:

 There is information asymmetry between the investment banks that act as underwriters of a first-issue initial public offering (IPO) from outside the U.S. and the subsequent investors. Accordingly, the issued stock can suffer from ‘‘underpricing’’ and fail to maximize potential proceeds of the IPO. The empirical analysis set forth in this paper finds that law firms can act as reputational intermediaries to provide signals of value. Prestigious law firms that represent investment banks are found to reduce underpricing, while the prestige of the law firms representing the issuer can increase underpricing depending on the nation of domicile for the firms.

Article Details

Law Firms as Reputational Intermediaries and the Effect on US Bound First Offer IPO Underpricing

Authors:

Majdi A. Quttainah | William Paczkowski

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.22 Issue 1, pp.73-90

Document Type:

Article

Publication Date:

1/2015

Document Language:

English

Document ID (Org No.):

2001943656

pISSN:

2957-3521

Law Firms

Prestige

First-issue

Initial Public Offerings

Issues

Article Details

Law Firms as Reputational Intermediaries and the Effect on US Bound First Offer IPO Underpricing

Authors: Majdi A. Quttainah | William Paczkowski

Publisher: Kuwait University

Journal: Arab Journal of Administrative Sciences Vol.22 Issue 1, pp.73-90

Document Type: Article

Publication Date: 1/2015

Document Language: English

Document ID (Org No.): 2001943656

pISSN: 2957-3521

Law Firms

Prestige

First-issue

Initial Public Offerings

Issues

Authors:

Majdi A. Quttainah | William Paczkowski

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.22 Issue 1, pp.73-90

Document Type:

Article

Publication Date:

1/2015

Document Language:

English

Document ID (Org No.):

2001943656

pISSN:

2957-3521