The study looked at why some companies underprice their stocks before going public. They compared companies that got funding from venture capitalists with those that didn't. They found that venture-backed companies tend to have better underwriters and get less money from them. Surprisingly, these companies often have higher returns on their first day of trading compared to non-venture-backed companies. Venture-backed companies also tend to have more pricing mistakes before going public. The study showed that underpricing before going public is intentional and helps reduce costs for the company later on.