Date of Award


Degree Name

Doctor of Philosophy


Business Administration

First Advisor

Beardsley, Xiaoxin

Second Advisor

Peterson, Mark


IPOs are used as an example for the U.S. equity primary market: two opposite IPO methods have been in practice for years: bookbuilding and open auction. Global evidence indicates that almost all corporations choose to go public by the bookbuilding approach, now dominating major IPO markets like the United States. We attempt to explore the reason behind such dominance and find theoretically and empirically that an open auction IPO results in less IPO underpricing and more issuer proceeds than a traditional bookbuilding IPO, if maximizing issuer proceeds is the objective. We also find Bookbuilding IPO firms are more likely to register for and exercise the greenshoe option, and issue seasoned equity offerings. Furthermore, auction IPOs take longer to finally go public, amend S-1 files more frequently, and price IPO more conservatively relative to the previously suggested price ranges than bookbuilding IPOs.For the secondary market trading of politicians in the U.S. equity market, specifically around company filings, we find that politicians' trades that precede 8-K filings outperform their other trades. We also show that political trading activity predicts subsequent short-term abnormal returns, especially during the financial crisis and the covid crisis — periods when public policy is arguably the most influential.

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