The DOI matches its Crossref record.
Why new issues are underpriced
Overview
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
In the citing paper
“Mechanisms such as underpricing (Rock, 1986;Benveniste and Spindt, 1989) and price stabilization (Chowdhry and Nanda, 1996;Benveniste et al., 1996;Benveniste et al., 1998) are market features that address information problems.”
From The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle (1998) · cites this paper as Rock, 1986
Citations
Cites
No references could be resolved yet.
Research works printed but not linked: 11
- Baron, 1982, A model of the demand for investment banking advising and distribution services for new issues, Journal of Finance, 955, 10.2307/2327760 · DOI
- Beatty, 1986, Investment banking, reputation, and the underpricing of initial public offerings, Journal of Financial Economics, 10.1016/0304-405X(86)90055-3 · DOI
- Federal, 1984, Proposed Rules
- Grossman, 1976, On the efficiency of competitive stock markets where traders have diverse information, Journal of Finance, 31, 573, 10.2307/2326627 · DOI
- Ibbotson, 1975, Price performance of common stock new issues, Journal of Financial Economics, 2, 235, 10.1016/0304-405X(75)90015-X · DOI
- Ibbotson, 1975, ‘Hot issue’, Journal of Finance, 30, 1027, 10.2307/2326721 · DOI
- Logue, 1973, On the pricing of unseasoned equity issues, 1965–1969, Journal of Financial and Quantitative Analysis, 8, 91, 10.2307/2329751 · DOI
- McDonald, 1972, New issue stock price behavior, Journal of Finance, 97, 10.2307/2978508 · DOI
- Reilly, 1977, New issues revisited, Financial Management, 28, 10.2307/3664963 · DOI
- Reilly, 1969, Investor experience with new stock issues, Financial Analysts Journal, 73, 10.2469/faj.v25.n5.73 · DOI
- Ritter, 1984, The ‘hot issue’ market of 1980, Journal of Business, 57, 215, 10.1086/296260 · DOI
Cited by
Sorted by citations
N. Berger, A., & F. Udell, G. (1998) · Journal of Banking & Finance · doi:10.1016/s0378-4266(98)00038-7 · Cited by 3,690
“Mechanisms such as underpricing (Rock 1986, Benveniste and Spindt 1989) and price stabilization (Chowdhry and Nanada 1996, Benveniste, Busaba and Wilhelm 1996, Benveniste, Erdal, and Wilhelm 1998) are market features that address information problems.”
The role of venture capital in the creation of public companies
Barry, C. B., Muscarella, C. J., Peavy, J. W., & Vetsuypens, M. R. (1990) · Journal of Financial Economics · doi:10.1016/0304-405x(90)90064-7 · Cited by 1,167
Metadata
- Authors
- Rock, K.
- Affiliations
- Harvard University (US)
- Corresponding author
- Rock, Kevin
- Venue
- Journal of Financial Economics
- Publisher
- Elsevier BV
- Published
- 1986-01
- Volume
- 15
- Issue
- 1-2
- Pages
- 187-212
- ISSN
- 0304-405X (ISSN-L)
- OpenAlex
- W2073488258
- Cited by
- 2,788
- References
- 0
- Citations by year
- 2026: 75 · 2025: 88 · 2024: 87 · 2023: 91 · 2022: 86 · 2021: 105 · 2020: 94 · 2019: 113 · 2018: 90 · 2017: 121 · 2016: 93 · 2015: 108 · 2014: 119 · 2013: 109 · 2012: 117
- FWCI
- 45.71
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Financial Economics (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
- Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
- Keywords
- initial public offerings, IPO underpricing, information asymmetry, informed traders, crowding out, uninformed investors, share pricing
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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