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Author:Helwege, Jean 

Working Paper
Initial public offerings in hot and cold markets
Asymmetric information models characterize hot IPO markets as periods when better quality firms have an incentive to issue equity, and cold markets when the lemons premium associated with equity is too high to draw in many issuers. Recent empirical evidence, however, suggests that firms that issue in hot markets are a major source of stock price underperformance of equity issuers. We investigate these opposing views with data on IPO firms that issued in 1983, a hot market, and 1988, a cold market. We find that the two sets of firms have similar operating performance, but stock returns are worse for firms that went public in the hot market. Our results are largely consistent with investor overoptimism in hot markets, but not with the asymmetric information models.
AUTHORS: Helwege, Jean; Liang, J. Nellie
DATE: 1996

Working Paper
Initial Public Offerings in Hot and Cold Markets
Asymmetric information models characterize hot IPO markets as periods when better quality firms have an incentive to issue equity, and cold markets when the lemons premium associated with equity is too high to draw in many issuers. Recent empirical evidence, however, suggests that firms that issue in hot markets are a major source of stock price underperformance of equity issuers. We investigate these opposing views with data on IPO firms that issued in 1983, a hot market, and 1988, a cold market. We find that the two sets of firms have similar operating performance, but stock returns are worse for firms that went public in the hot market. Our results are largely consistent with investor overoptimism in hot markets, but not with the asymmetric information models.
AUTHORS: Helwege, Jean; Liang, J. Nellie

Working Paper
Sectoral shifts and interindustry wage differentials
AUTHORS: Helwege, Jean
DATE: 1989

Working Paper
Initial public offerings in hot and cold markets
The literature on IPOs offers a wide variety of explanations to justify the dramatic swings in the volume of IPOs observed in the market. Many theories predict that hot IPO markets are characterized by clusters of firms in particular industries for which a technological innovation has occurred, suggesting that hot and cold market IPO firms will differ in quality, prospects, or types of business. Others suggest hot market IPOs are firms that take advantage of irrational investors. We compare firms that go public in a number of hot and cold markets during 1975- 2000, examining them at the time of the IPO and during the following five years. We find that both hot and cold market IPOs are largely concentrated in the same narrow set of industries and hot markets for many industries occur at the same time. We also find few distinctions in quality and scant evidence that hot market IPOs have better growth prospects. Our results suggest that technological innovations are not the primary determinant of hot markets because IPO markets cycle with greater frequency than the underlying innovations, and are more in line with the view that hot markets reflect greater investor optimism, though not necessarily active manipulation by managers.
AUTHORS: Liang, J. Nellie; Helwege, Jean
DATE: 2003

Working Paper
Is there a pecking order? Evidence from a panel of IPO firms
AUTHORS: Helwege, Jean; Liang, J. Nellie
DATE: 1994

Working Paper
Alternative tests of agency theories of callable corporate bonds
AUTHORS: Crabbe, Leland; Helwege, Jean
DATE: 1993

Working Paper
How long do junk bonds spend in default?
AUTHORS: Helwege, Jean
DATE: 1994

Working Paper
Capital structure, bankruptcy costs, and firm-specific human capital
AUTHORS: Helwege, Jean
DATE: 1989

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