Why Small Business Owners Should Not Worry about“Money Left on the Table” in IPOs! | Zendy

Roger Su | Zendy; Keith Hooper | Zendy; Amitabh Dutta | Zendy; Ronghua Yi | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Why Small Business Owners Should Not Worry about“Money Left on the Table” in IPOs!

Author(s) -

Roger Su,

Keith Hooper,

Amitabh Dutta,

Ronghua Yi

Publication year - 2011

Publication title -

international business research

Language(s) - English

Resource type - Journals

eISSN - 1913-9012

pISSN - 1913-9004

DOI - 10.5539/ibr.v4n4p42

Subject(s) - initial public offering , business , closing (real estate) , originality , worry , value (mathematics) , share price , primary market , accounting , public offering , marketing , finance , stock market , stock exchange , qualitative research , psychology , paleontology , social science , anxiety , horse , machine learning , psychiatry , sociology , computer science , biology

Purpose – this study aims to investigate how those directors of listed companies to make profits when their firms were listed to public. Design/methodology/approach –This is an empirical study; we adopted the formula from Ritter (2001) for this research. Findings -this study finds that directors of issuing companies usually get benefits from the money left on the table due to two factors. First, they usually retain larger percentage of shares before or after the companies going public; second, the first-day closing market price is normally higher than the initial file price ranges (defined as the expected price per share by issuing companies just before the firms go public). Originality/value - the findings may be used for future academic research literatures which focus on IPO or primary market. This research would help individual investors better understanding primary market especially IPO market

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research