Creating Visibility: Voluntary Disclosure by Private Firms Pursuing an Initial Public Offering

  title={Creating Visibility: Voluntary Disclosure by Private Firms Pursuing an Initial Public Offering},
  author={Michael J. Dambra and Bryce Schonberger and Charles E. Wasley},
  journal={Wharton Research Data Services (WRDS) Research Paper Series},
We draw on Merton (1987) to develop predictions for the benefits of voluntary disclosures made by firms pursuing an initial public offering (IPO) prior to providing regulated financial information via an IPO prospectus. For our sample of IPOs, we find that voluntarily issuing press releases and attending investor and industry conferences prior to filing the IPO prospectus are common disclosure activities. Consistent with Merton (1987), we find that pre-prospectus disclosures are positively… 
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