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dc.contributor.authorFung, Simon Yu Kiten_US
dc.contributor.authorGul, Ferdinand A.en_US
dc.contributor.authorRadhakrishnan, Sureshen_US
dc.date.accessioned2014-09-11T19:17:49Z
dc.date.available2014-09-11T19:17:49Z
dc.date.created2014-05en_US
dc.identifier.issn0025-1909en_US
dc.identifier.urihttp://hdl.handle.net/10735.1/4005
dc.description.abstractWe examine the relationship between investment banks' initial public offering (IPO) market shares and their prior IPO underpricing in the new IPO market for China-based companies on the Hong Kong Stock Exchange. To gain expertise in Chinese business practices, investment banks have the incentive to obtain business in this new IPO market by providing high offer prices to the issuer, leading to less underpricing and less money on the table. We hypothesize and find that the less an investment bank underprices China-based company IPOs, the greater its subsequent market share of China-based company IPOs in the Hong Kong Stock Exchange. Furthermore, this relationship is driven by a bank's initial China-based company IPO deals. These results suggest that in new IPO markets, investment banks' initial market shares, obtained through lower underpricing, help them grow their market shares in later periods, possibly through the expertise gained in the initial business.en_US
dc.language.isoenen_US
dc.publisherInformsen_US
dc.relation.urihttp://dx.doi.org/10.1287/mnsc.2013.1817en_US
dc.rights©2014 INFORMSen_US
dc.subjectGoing public (Securities)en_US
dc.subjectMarket shareen_US
dc.subjectInvestment bankingen_US
dc.subjectChina--Hong Kongen_US
dc.titleInvestment Banks' Entry into New IPO Markets and IPO Underpricingen_US
dc.type.genrearticleen_US
dc.identifier.bibliographicCitationFung, Simon Yu Kit, Ferdinand A. Gul, and Suresh Radhakrishnan. 2014. "Investment Banks' Entry into New IPO Markets and IPO Underpricing." Management Science 60(5): 1297-1316.en_US
dc.source.journalManagement Scienceen_US
dc.identifier.volume60en_US
dc.identifier.issue5en_US
dc.identifier.startpage1297en_US
dc.contributor.LCNA2003051787‏ (Radhakrishnan, S)


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