Strength of analyst coverage following IPOs

• 成果类型: Article
• 署名作者: James, Christopher; Karceski, Jason
• 署名单位: State University System of Florida; University of Florida
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.09.003
• 发表日期: 2006
• 页码: 1-34
• 关键词: IPO; Underpricing; target price; stock recommendation; SECURITY ANALYSTS

摘要

Firms with poor aftermarket performance are given higher target prices and are more likely to receive strong buy recommendations, especially by analysts affiliated with the lead underwriter. This favorable coverage is relatively short lived, typically lasting less than six months. Controlling for the quantity of coverage received, stock prices of newly public firms increase more when the target price ratio is high and recommendation is a strong buy. These results suggest that when a firm goes public, underwriter-affiliated analysts provide protection in the form of booster shots of stronger coverage if the firm experiences poor aftermarket stock performance. (c) 2006 Published by Elsevier B.V.