IPO Pricing in “Hot” Market Conditions: Who Leaves Money on the Table?

Two concerns IPO researchers have are the apparent short-run underpricing (the stock trades up in the secondary market) and the longer run underperformance (stock falls during long event window). Previous research has been only partially successful in explaining the continued existence of these two conflicting and seemingly contradictory anomalies. Some of these previous attempts include Chowdry and Nanda 1996 who show that … [ Read more ]

Knowledge Gap

The public’s misconception of what auditors do stands as a yawning fissure between CPAs and investors. How will the profession solve the problem?

Post-Merger Integration: How I.B.M. and Lotus Work Together

AT 8:25 A.M. on Monday, June 5, 1995, Jim Manzi, chief executive of the Lotus Development Corporation, received an unexpected phone call from Louis V. Gerstner Jr., the chairman and chief executive of the International Business Machines Corporation.

I.B.M., Mr. Gerstner said, had just tendered an all-cash offer of $64 a share for Lotus, a storied software maker in Cambridge, Mass., and he hoped Mr. … [ Read more ]