IPOs and Product Quality

Stoughton, Neal M.; Wong, Kit Pong; Zechner, Josef

doi:10.1086/321931

Cited by 172 publications

(85 citation statements)

References 38 publications

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“…Alternatively, initial returns may have a direct impact on consumer demand that is unrelated to publicity. This latter explanation is consistent with the models by Milgrom and Roberts (1986) and Stoughton et al (2001).…”

Section: Ipo Underpricing and Post-ipo Web Trafficsupporting

confidence: 91%

The Marketing Role of IPOs: Evidence from Internet Stocks

Demers

Lewellen

2001

SSRN Journal

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Section: Ipo Underpricing and Post-ipo Web Trafficsupporting

confidence: 91%

The Marketing Role of IPOs: Evidence from Internet Stocks

Demers

Lewellen

2001

SSRN Journal

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“…A possible interpretation is that listing abroad is partly a means of capitalizing on the reputation acquired through a presence on foreign output markets. Conversely, companies that depend on foreign sales value the positive publicity associated with a foreign listing -as suggested by Stoughton, Wong and Zechner (1998). Size also raises the probability of listing abroad: the elasticity of the odds of listing abroad with respect to total assets is 0.71 (the logarithm of 2.041).…”

Section: Predicting Cross-listing From Company Characteristicsmentioning

confidence: 99%

The Geography of Equity Listing: Why Do European Companies List Abroad?

2000

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This paper documents the aggregate trends in the foreign listings of companies and analyzes both their distinctive pre-listing characteristics and their post-listing performance relative to other companies. In the 1986-97 interval, many European companies listed abroad, but did so mainly on US exchanges. At the same time, the number of US companies listed in Europe decreased. The cross-listings of European companies appear to have sharply different motivations and consequences depending on whether they cross-list in the United States or within Europe. In the first case, companies pursue a strategy of rapid expansion fuelled by high leverage before the listing and large equity issues after the listing. They rely increasingly on export markets both before and after the listing, and tend to belong to high-tech industries. In the second case, companies do not grow more than the control group, and increase their leverage after the cross-listing. Also, they fail to increase their foreign sales in the wake of the cross-listing. The only common features of the two groups are their large size, high foreign sales before cross-listing and high R&D spending after cross-listing. Keywords:cross-listings, going public, initial public offerings, geography JEL classification:G15, G30, G39

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“…Most of the early literature on disclosure focuses on the incentive to reveal once a firm has acquired some private information (Stoughton, Wong, and Zechner (2001), Yosha (1995), and Gertner, Gibbons, and Scharfstein (1988)). In contrast, we study the long-term transparency choice, a structural decision before private information is known.…”

Section: Introductionmentioning

confidence: 99%

Strategic Transparency and Informed Trading: Will Capital Market Integration Force Convergence of Corporate Governance?

Perotti

Thadden

2003

The Journal of Financial and Quantitative Analysis

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Dominant investors can influence the publicly available information about firms by affecting the cost of information collection. Under strategic competition, transparency results in higher variability of profits and output. Thus, lenders prefer less transparency, since this protects firms when in a weak competitive position, while equity holders prefer more. Market interaction creates strategic complementarity in gathering information on competing firms, thus entry by transparent competitors will improve price informativeness. Moreover, as the return to information gathering increases with liquidity, increasing global trading may undermine the ability of bank control to keep firms opaque.

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IPOs and Product Quality

Cited by 172 publications

References 38 publications

The Marketing Role of IPOs: Evidence from Internet Stocks

The Marketing Role of IPOs: Evidence from Internet Stocks

The Geography of Equity Listing: Why Do European Companies List Abroad?

Strategic Transparency and Informed Trading: Will Capital Market Integration Force Convergence of Corporate Governance?

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