Abstract

http://ssrn.com/abstract=909719
 


 



Ebay, Inc. (B)


Michael J. Schill


University of Virginia – Darden Graduate School of Business Administration


UVA-F-1358

Abstract:     
Set in the fall of 1998, this case series (see also the A case, UVA-F-1357) examines the decision by eBay management to proceed with the company's initial public offering during the quietest IPO market in 20 years. In the A case, eBay's chief financial officer considers the financial and competitive implications of delaying the offering, as well as the challenge of fairly pricing the shares of an emerging, unseasoned Internet stock. The case provides an excellent forum for students to discuss the costs and benefits of going public. The B case reviews the events of eBay's first trading day and the associated 160% return on the shares. With such a backdrop, students are exposed to one of the well-known finance anomalies--IPO underpricing--and are invited to discuss various proposed explanations. The case series provides opportunities for the instructor to develop the following teaching objectives: (1) review the institutional aspects of the equity-issuance transaction, (2) explore the costs and benefits associated with public share offerings, (3) examine the impact of market turbulence on the IPO market, (4) develop an appreciation for the difficulty of valuing unseasoned firms, and (5) evaluate the received explanations of various finance anomalies, such as IPO underpricing.

Number of Pages in PDF File: 2

Keywords: internet, valuation, initial public offering

working papers series


Download This Paper

Date posted: October 21, 2008  

Suggested Citation

Schill, Michael J., Ebay, Inc. (B). Darden Case No. UVA-F-1358. Available at SSRN: http://ssrn.com/abstract=909719

Contact Information

Michael J. Schill (Contact Author)
University of Virginia – Darden Graduate School of Business Administration ( email )
P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4071 (Phone)
434-243-7676 (Fax)
HOME PAGE: http://www.darden.virginia.edu/faculty/schill.htm
Feedback to SSRN


Paper statistics
Abstract Views: 749
Downloads: 206
Download Rank: 68,364

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.281 seconds