The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.
Signalling and the Pricing of New Issues
Abstract
This paper develops a signalling model with two signals, two attributes, and a continuum of signal levels and attribute types to explain new issue underpricing. Both the fraction of the new issue retained by the issuer and its offering price convey to investors the unobservable “intrinsic” value of the firm and the variance of its cash flows. Many of the model's comparative statics results are novel, empirically testable, and consistent with the existing empirical evidence on new issues. In particular, the degree of underpricing, which can be inferred from observable variables, is positively related to the firm's post‐issue share price.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Riley, J. G. (1979) · Econometrica · doi:10.2307/1914187 · Cited by 616
Cited by
Grandstanding in the venture capital industry
Gompers, P. A. (1996) · Journal of Financial Economics · doi:10.1016/0304-405x(96)00874-4 · Cited by 1,347
Business sustainability performance and cost of equity capital
Ng, A. C., & Rezaee, Z. (2015) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2015.08.003 · Cited by 650
DEMERS, E., & JOOS, P. (2007) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2007.00236.x · Cited by 196
Metadata
- Authors
- GRINBLATT, M., & HWANG, C. Y.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1989-06
- Volume
- 44
- Issue
- 2
- Pages
- 393-420
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2134391930
- Cited by
- 1,048
- References
- 1
- FWCI
- 78.26
- Type
- journal article
- Language
- en
- Open access
- closed
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 ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: Signalling and the Pricing of New Issues. https://app.cochat.ai/papers/10.1111/j.1540-6261.1989.tb05063.x
- The paper
- GRINBLATT, M., & HWANG, C. Y. (1989). Signalling and the Pricing of New Issues. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1989.tb05063.x
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
