Going Public and Underpricing as Brand Value Enhancing Tools

Asian Economic and Financial Review, 5(11):1208-1226, 2015

19 Pages Posted: 7 Jan 2016 Last revised: 11 Mar 2016

See all articles by Murad Harasheh

Murad Harasheh

University of Milan - Bicocca; University of Bologna

Stefano Gatti

Bocconi University - Department of Finance

Date Written: January 5, 2016

Abstract

After the year 2000, a new trend in corporate finance-related research has been investigating the relationship between Initial public offerings “IPOs” variables from one side and brand value on the other in order to come up with new explanations for the extreme underpricing levels for technological companies. Studies, in particular, connect underpricing as the main IPO variable to product enhancement measures such as brand value. Some studies find evidence that the level of underpricing is positively related to long-term product market strength. This review paper comes to integrate the financial theme of going public and the business theme of brand value. We provide a comprehensive review for the recent seminal work in going public and underpricing, and their relationship to brand value creation in order to draw policy implications for decision-makers.

Keywords: IPOs, Underpricing, Initial return, Marketing, Brand value, Brand creation, Private equity

JEL Classification: G24, M370

Suggested Citation

Harasheh, Murad and Harasheh, Murad and Gatti, Stefano, Going Public and Underpricing as Brand Value Enhancing Tools (January 5, 2016). Asian Economic and Financial Review, 5(11):1208-1226, 2015, Available at SSRN: https://ssrn.com/abstract=2711266 or http://dx.doi.org/10.2139/ssrn.2711266

Murad Harasheh (Contact Author)

University of Milan - Bicocca ( email )

Via Bicocca degli Arcimboldi, 8
Milano, Milano 20126
Italy
+390264483067 (Phone)

HOME PAGE: http://www.unimib.it

University of Bologna ( email )

Bologna
Italy

HOME PAGE: http://https://www.unibo.it/sitoweb/murad.harasheh

Stefano Gatti

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
77
Abstract Views
617
rank
419,659
PlumX Metrics