New Wayne State University Research Examines IPO "Ecosystem"
Research by Kun (Carl) Liu, an assistant professor of management at Wayne State University’s School of Business Administration, and his colleagues, reminds potential investors to use the wealth of information made available in the IPO process to also take a close look at those partners on which the IPO firm relies – the other companies in what he calls the IPO "ecosystem."
Liu’s advice to analysts and investors alike is to follow the entire process with a cautious and critical eye. "Be more careful when looking at these dyadic relationships," Liu says. "Examine the strengths and weaknesses of the transaction partners as well as the IPO firm and be prepared to reallocate assets as new information becomes available."
