Subject Index 529
influence cost model, 442
information asymmetries, 236, 260, 261, 300,
356
information cascades,seecascades
information revelation theories, 379, 389–396,
398, 416, 418
informativeness, 274, 325
initial public offerings (IPOs), 236, 292
insider trading, 242, 248, 289, 291, 356
inspection, 304, 306, 313, 314
institutional investors, 240, 241, 247, 284, 293,
295
instruments, 46, 49, 51, 70, 72
internal capital, 148, 158, 171, 174
internal capital markets, 438, 451
International Organization of Securities Com-
missions (IOSC), 242, 356
inverse Mills ratio, 44, 46, 53, 68, 76, 77
investigation costs, 294
investment banks,see alsounderwriting, 190,
192, 207, 210, 211, 417, 418
investment diversity, 436
investment–cash flow sensitivity, 450
investor sentiment, see alsobehavioral ap-
proaches, 150, 155, 163, 166, 177, 338
IPO allocations,seeallocations
IPO underpricing, 267, 272, 274, 283, 355
IPOs, 151, 152, 154, 159, 161, 162, 164, 176,
237, 238, 243, 245, 246, 250, 252, 254,
259, 260, 265, 266, 268, 270, 275, 276,
279, 280, 282, 283, 291–293, 296–298,
335, 336, 344–346, 348, 349, 351, 352,
359, 360
IRR, 175
irrational investors,seebehavioral approaches
issue announcement, 261, 305, 308, 310–313,
315, 318, 323, 326, 333, 337, 340
issue costs, 238, 260, 262, 265, 288, 298, 305,
306, 325, 356–358, 360
issue methods, 265, 288, 298, 313, 327, 357,
360
issue-purged factors, 355
issuer portfolios, 354, 355
January effect, 149
joint hypothesis problem, 154, 160
latent, 59, 60
latent information, 68
lawsuit avoidance theory, 402–405, 412
lead underwriters, 243, 245–248, 274, 275,
283, 284, 291
legal insurance hypothesis,seelawsuit avoidance
theory
legal liability, 402
lending relationships, 243, 284, 285
level I program, 240
level II program, 240
level III public offer, 240
limited arbitrage, 147, 149
limits on arbitrage, 149, 153
lock-up agreements, 248
long horizon, 5–8, 14, 15, 20–23, 26–29, 31, 32
long-run performance, 79, 238, 336, 339, 340,
344, 345, 360, 361, 414–416
long-run returns, 330, 339, 342
Longitudinal Research Database (LRD), 431
lotation method, 320macro factors, 353
main segments, 448
management fees, 246, 265
managerial horizons, 151, 152, 154, 156, 177
market efficiency, 5, 7, 10, 21–23, 26
market for assets, 466
market for whole firms and partial-firm assets,
443
market making,see alsomarket microstructure,
248, 269, 284, 290–292, 297
market microstructure, 273–275, 289–291,
361, 406, 407
market reaction, 282, 305, 308, 309, 310–319,
322, 326, 359
market timing, 147, 150–153, 156–164, 170,
177, 330, 336
market-makers, 406, 407
market-to-book, 153, 157, 159, 164
Markov chain Monte Carlo, 57
matched firms, 343, 352
matched-firm technique, 342, 350, 352
matching, 41, 53, 54, 80
matching methods, 78
matching models, 51, 52, 439
measurement error, 452, 453, 471
mental accounting, 165, 176
microstructure, 406
mimicking portfolios, 347, 353
Modigliani–Miller theorem, 150
momentum, 149
monitoring, 295, 304, 327
neoclassical model, 443, 444, 461
non-discriminatory auction, 238
NPV, 167, 175