Underwriter reputation, initial returns, and the long-run performance of IPO stocks

• 成果类型: Article
• 署名作者: Carter, RB; Dark, FH; Singh, AK
• 署名单位: Iowa State University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.104624
• 发表日期: 1998
• 页码: 285-311
• 关键词: PUBLIC OFFERINGS; issues; MARKET

摘要

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.