An additional explanation for the underprice focuses on the role of the underwriter. Beatty and Ritter (1986) report that underwriters tend to underprice more (less) in offerings characterized as more (less) speculative. Prior studies have also demonstrated that underprice is lower when the firm is taken public by a prestigious underwriter (Carter and Manaster, 1990). More recently, Roosenboom (2012) reports that under writers in France, who also estimate the ex-ante market price prior to the flotation, deliberately underprice IPOs.