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 xed supply. Hence, a sudden increase in demand for IPO nancing increases the compensation of IPO screening labor. Increased compensation results in reduced screening which encourages sub-marginal rms to enter the...
| Main Authors: | , , |
|---|---|
| Format: | Working paper |
| Language: | English |
| Published: |
Oxford Finance
2008
|