Access the full text.
Sign up today, get DeepDyve free for 14 days.
C. James (1992)
Relationship-Specific Assets and the Pricing of Underwriter ServicesJournal of Finance, 47
J. Johnson, Robert Miller (1988)
Investment Banker Prestige and the Underpricing of Initial Public OfferingsFinancial Management, 17
James Booth, Richard Smith (1986)
Capital raising, underwriting and the certification hypothesisJournal of Financial Economics, 15
I. Welch (1989)
Seasoned Offerings, Imitation Costs, and the Underpricing of Initial Public OfferingsJournal of Finance, 44
Randolph Beatty, J. Ritter (1986)
INVESTMENT BANKING, REPUTATION, AND THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS*Journal of Financial Economics, 15
S. Titman, Brett Trueman (1986)
Information quality and the valuation of new issuesJournal of Accounting and Economics, 8
Richard Carter, Steven Manaster (1990)
Initial Public Offerings and Underwriter ReputationJournal of Finance, 45
Feinberg (1980)
Investment banking's battle of the bulgeInstitutional Investor
Hayes (1971)
Investment banking: Power structure in fluxHarvard Business Review, 49
A recent examination of underwriter reputation and initial public offerings (IPOs) suggests that one of the reasons prestigious underwriters market low‐risk IPOs is to increase the expected present value of subsequent offerings. There is a greater likelihood that a firm issuing low‐risk IPOs will be a viable future operation with the potential for subsequent offerings than a firm issuing high‐risk IPOs. I examine the hypothesis that the likelihood of subsequent offerings is negatively related to IPO risk. In addition to finding support for this hypothesis, I show that the likelihood of subsequent offerings is positively related to the IPO underwriter's reputation and negatively related to the IPO gross spread. Finally, I find that the likelihood of firms switching IPO underwriters for subsequent offerings decreases with increasing IPO underwriter reputation.
The Journal of Financial Research – Wiley
Published: Dec 1, 1992
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.