Tag Archives: ipo

Democracy and the Pricing of Initial Public Offerings Around the World

By | July 23, 2021
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The proliferation of democracy internationally has spurred a large volume of research on its benefits (and costs) over economic growth in recent decades. Some studies assess the impact of democracy over various aspects of macroeconomic growth; however, the same cannot be argued for the micro level, whereby the effect of democracy over corporate decisions has been largely ignored.  To the extent that macroeconomic activity reflects the… Read More »

Comprehensive Study of Special-Purpose Acquisition Company (SPAC): An Investment Perspective

By | July 8, 2021
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Introduction Special-Purpose Acquisition Companies (SPACs) have been widely discussed over the past year. According to the U.S. Securities and Exchange Commission (SEC), a SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set time frame. A SPAC has 24 months after the initial public offering (IPO)… Read More »

Corporate Governance at Play: Between Law and Its Perception

By | June 23, 2021
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When firms go through an Initial Public Offering (IPO), their corporate governance changes by becoming more complex to reflect the requirements of a public firm. At the same time, there are many mechanisms at play due to the presence of different categories of owners: insiders vs. outsiders, founders vs. venture capital investors, etc. Therefore, the… Read More »

The Role of the Board’s Financial Expertise in the IPO Process

By | June 4, 2021
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Since the 1970s, the underpricing of IPOs has been a well-observed phenomenon and many issuers see their stock price rising sharply on the first day of trading, which means that the IPO firm could have realized higher proceeds from the offering (“money left on the table”). As a result, venture capitalists and Silicon Valley companies recently expressed their… Read More »