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dc.contributor.authorMatanova, Natalia
dc.contributor.authorSteigner, Tanja
dc.contributor.authorYi, Bingsheng
dc.contributor.authorZheng, Qiancheng
dc.date.accessioned2020-10-28T07:14:42Z
dc.date.available2020-10-28T07:14:42Z
dc.date.issued2019en_US
dc.identifier.issn0924-865X
dc.identifier.doi10.1007/s11156-018-0747-0
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6582
dc.description.abstractIn a marked shift, it has become relatively more common for ordinary initial public offerings (IPOs) to contain going concern opinions (GCOs) in their offering documents. Examining the implications of such GCOs for IPO investors in a sample of ordinary IPOs from 2001 to 2012, we find that GCOs increase price accuracy by reducing price revisions and underpricing. Further, we show that GCO IPOs with reputable underwriters experience higher price revisions. Our underpricing analysis supports the lawsuit avoidance theory. We also provide novel evidence that the market can distinguish between temporarily constrained GCO IPOs and those with persistent problems that receive a second GCO post-IPO. Overall, this paper contributes to the existing literature by shedding light on whether GCOs contained in IPO prospectuses provide material information and result in better pricing mechanisms.en_US
dc.language.isoenen_US
dc.publisherSpringeren_US
dc.subjectIPOsen_US
dc.titleGoing concern opinions and IPO pricing accuracyen_US
dc.identifier.journalReview of Quantitative Finance and Accountingen_US
dc.source.volume53en_US
dc.source.beginpage195en_US
dc.source.endpage238en_US
dc.contributor.departmentPennsylvania State University, Abington, PA, 19001, USAen_US
dc.contributor.departmentSchool of Business, Emporia State University, Emporia, KS, 66801, USAen_US
dc.contributor.departmentDepartment of Accounting and Finance, California State University, Dominguez Hills, Carson, CA, 90747, USAen_US
dc.identifier.eissn1573-7179
vlerick.knowledgedomainAccounting & Financeen_US
vlerick.typearticleJournal articleen_US
vlerick.vlerickdepartmentAFen_US
dc.identifier.vperid274613en_US


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