Underwriter Reputation, Initial Returns, and the Long‐Run Performance of IPO Stocks

Journal of Finance - Tập 53 Số 1 - Trang 285-311 - 1998
Richard B. Carter1, Frederick H. Dark1, Ajai K. Singh1
1College of Business Iowa State University Ames, Iowa 50011

Tóm tắt

We find that the underperformance of IPO stocks relative to the market over a three‐year holding period is less severe for IPOs handled by more prestigious underwriters. Consistent with prior studies, we also find that IPOs managed by more reputable underwriters are associated with less short‐run underpricing. Among the various existing proxies for underwriter reputation, the Carter–Manaster measure is the most significant in the context of initial returns and also in the context of the three‐year performance of IPOs. The study also provides an updated list of the Carter–Manaster measure for various underwriters.

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Thông tin xuất bản

Journal of Finance

Tập 53 Số 1

285-311

Thông tin tác giả