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2) The larger the investor non-homogenous expectations, the higher the IPO underpricing.
Under both mechanisms, the larger the investor non-homogenous expectations, the larger the IPO underpricing.
Investor non-homogenous expectations' influence on IPO underpricing under different issuing mechanisms.
Different investor non-homogenous expectations' influence on IPO underpricing under different issuing mechanisms.
Conclusion two: The larger the investor non-homogenous expectations, the higher the IPO underpricing.
2) Foreign scholars explain IPO high underpricing from the perspective of non-homogenous expectations of investors, but fail to theoretically explain IPO pricing efficiency under different issuing mechanisms from the perspective of non-homogenous expectations of investors.
This reveals that the larger the non-homogenous expectations, namely V 2 − V 1, the higher the IPO underpricing.
Compared with the fixed price, unintentional underpricing caused by non-homogenous expectations under bookbuilding and IPO underpricing are much lower.
Once non-homogenous expectations among investors increase, this may cause the IPO underpricing under bookbuilding to become even higher.
Under the same condition of investor non-homogenous expectations, the risk aversion coefficient's influence on IPO underpricing under the different issuing mechanisms.
Under bookbuilding, if investor non-homogenous expectations become larger, IPO underpricing may be much higher than that under fixed-price issuing.
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