Issue Size Choice and "Underpricing" in Thrift Mutual-to-Stock Conversions.

A-Tier
Journal: Journal of Finance
Year: 1993
Volume: 48
Issue: 5
Pages: 1659-92

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Issue size choice and underpricing in mutual-to-stock conversions of thrifts are explained as a function of growth opportunities, perquisite consumption, and proprietary information. The authors provide evidence that thrifts with greater growth opportunities choose larger issue size and experience higher after-market price appreciation. This finding persists when they allow for investors' inferences about managers' proprietary information. Variables that explain underpricing in typical initial public offerings are significant by themselves but lose significance when combined with the issue size choice variables. Managerial holdings and the offer price do not act as dissipative signals of value in thrift conversions. Copyright 1993 by American Finance Association.

Technical Details

RePEc Handle
repec:bla:jfinan:v:48:y:1993:i:5:p:1659-92
Journal Field
Finance
Author Count
2
Added to Database
2026-01-25