Good IPOs draw in bad: inelastic banking capacity and hot markets
We posit that screening IPOs requires specialized labor which, in the short run, is in fixed supply. Hence, a sudden increase in demand for IPO financing increases the compensation of IPO screening labor. Increased compensation results in reduced screening which encourages sub-marginal firms to en...
| Main Authors: | , , |
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| Format: | Working paper |
| Published: |
University of Oxford
2008
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