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Article analysis:

This article provides an interesting perspective on the phenomenon of extreme underpricing in initial public offerings, particularly for internet firms in the late 1990s. It presents a model that highlights the potential benefits of substantial underpricing to owner–managers, which is then tested using a sample of 618 IPOs from 1994 to 1999. The results are consistent with the model’s predictions, showing that firms in which managers retain more shares and hold more options have greater first-day underpricing.

The article is generally reliable in terms of its content; however, there are some potential biases that should be noted. For example, it does not explore any counterarguments or present both sides equally; instead it focuses solely on the benefits of substantial underpricing for owner–managers without considering any potential risks or drawbacks associated with this strategy. Additionally, while it does discuss alternative explanations for its findings presented by other authors, it does not provide any evidence to support these claims or explore them further.

In conclusion, this article provides an interesting perspective on extreme IPO underpricing but should be read with caution due to potential biases such as one-sided reporting, unsupported claims, missing points of consideration, missing evidence for the claims made, unexplored counterarguments, promotional content, partiality etc., which could lead readers to draw inaccurate conclusions about the topic at hand.