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dc.contributor.advisorJonathan W. Lewellen.en_US
dc.contributor.authorMartínez, Sergio (Martínez Roel), 1966-en_US
dc.contributor.authorPerron, Paul M. 1961-en_US
dc.contributor.otherSloan School of Management.en_US
dc.date.accessioned2005-06-02T19:07:27Z
dc.date.available2005-06-02T19:07:27Z
dc.date.copyright2004en_US
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/1721.1/17903
dc.descriptionThesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2004.en_US
dc.descriptionIncludes bibliographical references (leaves 89-91).en_US
dc.description.abstractGoing public is an incredibly exciting and dynamic event in a company's life. The company and its management are transformed and will forever have to conduct their business differently. During the mid to late 1990s, many companies went public, creating multitudes of instant millionaires overnight, from company executives to administrative staff. Many people recognized that Initial Public Offerings (IPOs) tend to significantly increase in price on the first day of trading. As a result, there have been many academic studies to try to determine the rationale as to why IPOs are typically underpriced. Most of these academic studies have focused on the analysis of 1 st day pricing results and attempted to correlate these results to various hypotheses. We try to understand this phenomenon and corroborate the academic hypotheses by talking to those who set the offer price -the investment bankers, underwriters, and company managers- to find out why underpricing occurs. This thesis provides the reader with a better understanding of how companies are valued and the initial offering price determined, and explain the differences in opinion between academics, bankers, and management as to why underpricing occurs. To accomplish this task, we first focused on capturing underwriters' opinions regarding the valuation and pricing of IPOs. We then interviewed executives that had taken companies public to compare and contrast their views with those from the bankers, and compared them to the conclusions from academics' research.en_US
dc.description.statementofresponsibilityby Sergio Martínez and Paul M. Perron.en_US
dc.format.extent91 leavesen_US
dc.format.extent4085079 bytes
dc.format.extent4084885 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypeapplication/pdf
dc.language.isoengen_US
dc.publisherMassachusetts Institute of Technologyen_US
dc.rightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.en_US
dc.rights.urihttp://dspace.mit.edu/handle/1721.1/7582
dc.subjectSloan School of Management.en_US
dc.titleThe valuation and pricing of initial public offeringsen_US
dc.typeThesisen_US
dc.description.degreeS.M.en_US
dc.contributor.departmentSloan School of Management.en_US
dc.identifier.oclc56675902en_US


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