The impact of prestigious attorneys on IPO withdrawal in the global primary market
Abstract This study aims to determine whether the involvement of prestigious attorneys in issuing companies affects withdrawals in the initial public offering (IPO) market. There is little evidence on how the involvement of famous lawyers affects IPO withdrawal. The study considers a large dataset c...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2024-01-01
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| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40854-023-00555-6 |
| _version_ | 1797355569608130560 |
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| author | Fouad Jamaani Manal Alidarous |
| author_facet | Fouad Jamaani Manal Alidarous |
| author_sort | Fouad Jamaani |
| collection | DOAJ |
| description | Abstract This study aims to determine whether the involvement of prestigious attorneys in issuing companies affects withdrawals in the initial public offering (IPO) market. There is little evidence on how the involvement of famous lawyers affects IPO withdrawal. The study considers a large dataset consisting of 24,312 IPOs that were either successful or withdrawn from 22 distinct IPO marketplaces between January 1995 and December 2019. We find that IPO issuers may benefit from engaging with reputed attorneys by leveraging exceptional legal or negotiating abilities as quality certification signals to reduce IPO investors’ ex-ante uncertainty. Here, the objective is to protect their IPOs from withdrawal of at least by 22%. Multiple robustness tests validate the reliability of the results of this study. These findings have significant implications for researchers, legislators, investors, and issuers. |
| first_indexed | 2024-03-08T14:13:03Z |
| format | Article |
| id | doaj.art-4b158dbeeb824e4898d2326a085c6f63 |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-03-08T14:13:03Z |
| publishDate | 2024-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-4b158dbeeb824e4898d2326a085c6f632024-01-14T12:33:32ZengSpringerOpenFinancial Innovation2199-47302024-01-0110113910.1186/s40854-023-00555-6The impact of prestigious attorneys on IPO withdrawal in the global primary marketFouad Jamaani0Manal Alidarous1Department of Economic and Finance, College of Business Administration, Taif UniversityDepartment of Accounting, College of Business Administration, Taif UniversityAbstract This study aims to determine whether the involvement of prestigious attorneys in issuing companies affects withdrawals in the initial public offering (IPO) market. There is little evidence on how the involvement of famous lawyers affects IPO withdrawal. The study considers a large dataset consisting of 24,312 IPOs that were either successful or withdrawn from 22 distinct IPO marketplaces between January 1995 and December 2019. We find that IPO issuers may benefit from engaging with reputed attorneys by leveraging exceptional legal or negotiating abilities as quality certification signals to reduce IPO investors’ ex-ante uncertainty. Here, the objective is to protect their IPOs from withdrawal of at least by 22%. Multiple robustness tests validate the reliability of the results of this study. These findings have significant implications for researchers, legislators, investors, and issuers.https://doi.org/10.1186/s40854-023-00555-6IPO withdrawal riskReputationAttorneysCertificationInformation asymmetryEx-ante uncertainty |
| spellingShingle | Fouad Jamaani Manal Alidarous The impact of prestigious attorneys on IPO withdrawal in the global primary market Financial Innovation IPO withdrawal risk Reputation Attorneys Certification Information asymmetry Ex-ante uncertainty |
| title | The impact of prestigious attorneys on IPO withdrawal in the global primary market |
| title_full | The impact of prestigious attorneys on IPO withdrawal in the global primary market |
| title_fullStr | The impact of prestigious attorneys on IPO withdrawal in the global primary market |
| title_full_unstemmed | The impact of prestigious attorneys on IPO withdrawal in the global primary market |
| title_short | The impact of prestigious attorneys on IPO withdrawal in the global primary market |
| title_sort | impact of prestigious attorneys on ipo withdrawal in the global primary market |
| topic | IPO withdrawal risk Reputation Attorneys Certification Information asymmetry Ex-ante uncertainty |
| url | https://doi.org/10.1186/s40854-023-00555-6 |
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