Do the individuals closest to internet firms believe they are overvalued?

• 成果类型: Article
• 署名作者: Schultz, P; Zaman, M
• 署名单位: University of Notre Dame; University of Northern Iowa
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(00)00090-8
• 发表日期: 2001
• 页码: 347-381
• 关键词: INTERNET; IPO; mergers; market efficiency

摘要

Two explanations are commonly offered for the large number of recent IPOs by Internet firms. The first argues that Internet firms are trying to grab market share in an industry with large economies of scale. The second argues that Internet firms are rushing to go public when Internet stuck prices are irrationally high. In this paper we examine the actions of those closest to Internet firms - firm managers, underwriters, and venture capitalists - to determine their motives for going public. Numerous strategic alliances and mergers and acquisitions provide strong evidence of a rush to grab market share. Other factors provide only weak evidence that Internet IPOs are attempts to sell overpriced stock. (C) 2001 Elsevier Science S.A. All rights reserved. JEL classification. G13: G32.