Open AccessThe Effect Of Disclosure Patterns Of Risk Factors In Prospectus On The Relation Between Strategic Alliances And Underpricing Of Biotechnology IPOs
Author(s) -
諶家蘭,
Guo Ying,
Tawei Wang,
JiaLang Seng,
San-Shuan Hung
Publication year - 2017
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v33i3.9943
Subject(s) - prospectus , initial public offering , business , accounting , finance
This study observes a significantly negative moderating effect of the disclosing patterns of risk factors in initial public offerings (IPOs) prospectus on the association between strategic alliances and underpricing of biotechnology IPOs. Our findings suggest that strategic alliances mitigate information uncertainties when risk factor disclosures are less helpful, which alleviates the underpricing.