IPOs and Product Quality.

Article OPEN
Stoughton, Neal M; Wong, Kit Pong; Zechner, Josef;
(2001)
  • Journal: Journal of Business,volume 74,issue 3 July,pages375-408
  • Related identifiers: doi: 10.1086/321931

Given recent public attention paid to high-flying Internet IPOs such as Yahoo and Amazon.com, we explore a product market motive for going public. We develop a model where consumers discern product quality from the stock price. The model predicts that only better-qualit... View more
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