Program News

Professor Patrick Corrigan’s article on IPO pricing cited in SEC order

For the second time this year, a final order by the Securities and Exchange Commission cited Notre Dame Law Professor Patrick Corrigan’s article “The Seller’s Curse and the Underwriter’s Pricing Pivot: A Behavioral Theory of IPO Pricing.”

The recent order, issued May 19, cited Corrigan’s article in approving a change to the Nasdaq rules that allow companies to undertake primary direct listings. The new rule permits issuers, under certain conditions, to list their securities on the Nasdaq and to sell their securities in a registered offering by an auction directly on the exchange and without the participation of an underwriter. Such primary direct listings constitute a new alternative to the traditional underwritten initial public offering, which are typically priced by a negotiation between the issuer and the underwriter instead of an auction, and which typically involve a distribution of the issuer’s securities by an underwriter.…

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Featured Research: Is the Staggered Board Debate Really Settled

Martijn Cremers June 2018 150

The debate over staggered boards is heating up, largely because of the appearance of novel studies—including our own prior research—that challenge the results of earlier works documenting a negative impact of staggered boards on firm value. Meanwhile, a third way has appeared in this debate. In a recent article in the University of Pennsylvania Law Review, Settling the Staggered Board Debate, Professors Amihud, Schmid, and Davidoff Solomon (ASDS) purport to settle this debate, arguing that neither the position in favor or against staggered boards “has empirical support and, on average, a staggered board has no significant effect on firm value.” This article by K.J. Martijn Cremers, Simone Sepe, and Saura Masconale addresses the ASDS study and shows that the staggered board debate is very much alive rather than settled.  Read more here.