Evidence of information spillovers in the production of investment banking services

• 成果类型: Article
• 署名作者: Benveniste, LM; Ljungqvist, A; Wilhelm, WJ Jr; Yu, XY
• 署名单位: University of Minnesota System; University of Minnesota Twin Cities; Centre for Economic Policy Research - UK; New York University; University of Oxford; University of Virginia; Indiana University System; Indiana University Bloomington
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/1540-6261.00538
• 发表日期: 2003
• 页码: 577-608
• 关键词: initial public offerings; ipos; certification; allocation; reputation; INNOVATION; price

摘要

We provide evidence that firms attempting IPOs condition offer terms and the decision whether to carry through with an offering on the experience of their primary market contemporaries. Moreover, while initial returns and IPO volume are positively correlated in the aggregate, the correlation is negative among contemporaneous offerings subject to a common valuation factor. Our findings are-consistent with investment banks implicitly bundling offerings subject to a common valuation factor to achieve more equitable internalization of information production costs and thereby preventing coordination failures in primary equity markets.