Public information and IPO underpricing

We analyze the effect of public information on rational investors' incentives to reveal private information during the bookbuilding process and their demand for allocations in the IPO. Our model generates several new predictions. First, investors require more underpricing to truthfully reveal positive private information in bear markets than in bull markets (the incentive effect). Second, the fraction of positive private signals and of underpriced IPOs is increasing in market returns (the demand effect). Combined, these two effects can explain why IPO underpricing is positively related to pre-issue market returns, consistent with extant evidence. Using a sample of 5,000 U.S. IPOs from 1981-2008, we show that the empirical implications of the model are borne out in the data.Public information; partial adjustment; underpricing; IPOs; bookbuilding

On Aharonov-Casher bound states

In this work bound states for the Aharonov-Casher problem are considered. According to Hagen's work on the exact equivalence between spin-1/2 Aharonov-Bohm and Aharonov-Casher effects, is known that the $\boldsymbol{\nabla}\cdot\mathbf{E}$ term cannot be neglected in the Hamiltonian if the spin of particle is considered. This term leads to the existence of a singular potential at the origin. By modeling the problem by boundary conditions at the origin which arises by the self-adjoint extension of the Hamiltonian, we derive for the first time an expression for the bound state energy of the Aharonov-Casher problem. As an application, we consider the Aharonov-Casher plus a two-dimensional harmonic oscillator. We derive the expression for the harmonic oscillator energies and compare it with the expression obtained in the case without singularity. At the end, an approach for determination of the self-adjoint extension parameter is given. In our approach, the parameter is obtained essentially in terms of physics of the problem.Comment: 11 pages, matches published versio

On the influence of a Coulomb-like potential induced by the Lorentz symmetry breaking effects on the Harmonic Oscillator

In this work, we obtain bound states for a nonrelativistic spin-half neutral particle under the influence of a Coulomb-like potential induced by the Lorentz symmetry breaking effects. We present a new possible scenario of studying the Lorentz symmetry breaking effects on a nonrelativistic quantum system defined by a fixed space-like vector field parallel to the radial direction interacting with a uniform magnetic field along the z-axis. Furthermore, we also discuss the influence of a Coulomb-like potential induced by Lorentz symmetry violation effects on the two-dimensional harmonic oscillator.Comment: 14 pages, no figure, this work has been accepted for publication in The European Physical Journal Plu

Partial Adjustment to Public Information in the Pricing of IPOs

Extant literature shows that IPO first-day returns are correlated with market returns preceding the issue. We propose a rational explanation for this puzzling predictability by adding a public signal to Benveniste and Spindt (1989)’s information-based framework. A novel result of our model is that the compensation required by investors to truthfully reveal their information decreases with the public signal. This “incentive effect” receives strong empirical support in a sample of 6300 IPOs in 1983–2012. Controlling for the incentive effect, the positive relation between initial returns and pre-issue market returns disappears for top-tier underwriters, where the order book is held to be most informative, effectively resolving the predictability puzzle

Exposure to Fibres, Crystalline Silica, Silicon Carbide and Sulphur Dioxide in the Norwegian Silicon Carbide Industry

Objectives: The aim of this study was to assess personal exposure to fibres, crystalline silica, silicon carbide (SiC) and sulphur dioxide in the Norwegian SiC industry

Prediction Possibility in the Fractal Overlap Model of Earthquakes

The two-fractal overlap model of earthquake shows that the contact area distribution of two fractal surfaces follows power law decay in many cases and this agrees with the Guttenberg-Richter power law. Here, we attempt to predict the large events (earthquakes) in this model through the overlap time-series analysis. Taking only the Cantor sets, the overlap sizes (contact areas) are noted when one Cantor set moves over the other with uniform velocity. This gives a time series containing different overlap sizes. Our numerical study here shows that the cumulative overlap size grows almost linearly with time and when the overlapsizes are added up to a pre-assigned large event (earthquake) and then reset to `zero' level, the corresponding cumulative overlap sizes grows upto some discrete (quantised) levels. This observation should help to predict the possibility of `large events' in this (overlap) time series.Comment: 6 pages, 6 figures. To be published as proc. NATO conf. CMDS-10, Soresh, Israel, July 2003. Eds. D. J. Bergman & E. Inan, KLUWER PUB

Resolution of the Klein Paradox

We present a resolution of the Klein paradox within the framework of one-particle relativistic quantum mechanics. Not only reflection becomes total but the vacuum remains neutral as well. This is accomplished by replacing the pair production process with virtual negative energy "incidence" within the barrier in a similar manner to what is done with image charges in electrostatic and virtual sources in optics.Comment: 9 pages, 8 figure

Noninertial effects on a Dirac neutral particle inducing an analogue of the Landau quantization in the cosmic string spacetime

We discuss the behaviour of external fields that interact with a Dirac neutral particle with a permanent electric dipole moment in order to achieve relativistic bound states solutions in a noninertial frame and in the presence of a topological defect spacetime. We show that the noninertial effects of the Fermi-Walker reference frame induce a radial magnetic field even in the absence of magnetic charges, which is influenced by the topology of the cosmic string spacetime. We then discuss the conditions that the induced fields must satisfy to yield the relativistic bound states corresponding to the Landau-He-McKellar-Wilkens quantization in the cosmic string spacetime. Finally we obtain the Dirac spinors for positive-energy solutions and the Gordon decomposition of the Dirac probability current.Comment: 15 pages, no figure, this paper will be published in volume 42 of the Brazilian Journal of Physic