Orphan versus non-orphan IPOs: the difference analyst coverage makes
AbstractThis paper addresses the question of the importance of analyst coverage for the long-run returns of IPO firms over the period from 1991 to 2010. In US IPOs, during the one- to five-year horizon, we find a significant long-run abnormal performance by orphans (IPOs without analyst coverage) compared to non-orphans (IPOs with analyst coverage.Further analysis reveals that this outperformance by non-orphans stems from high analyst coverage. Our results are robust after accounting for venture capital backing, underwriting syndicates, underpricing, institutional investor ownership, or operating performance variables.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41584.
Date of creation: 20 Sep 2012
Date of revision:
IPOs; analyst coverage; long-run performance;
Other versions of this item:
- Boissin, Romain, 2012. "Orphan versus non-orphan IPOs: the difference analyst coverage makes," MPRA Paper 41542, University Library of Munich, Germany.
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-06 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rajan, Raghuram & Servaes, Henri, 1997. " Analyst Following of Initial Public Offerings," Journal of Finance, American Finance Association, vol. 52(2), pages 507-29, June.
- Daniel J. Bradley & Bradford D. Jordan & Jay R. Ritter, 2008. "Analyst Behavior Following IPOs: The 'Bubble Period' Evidence," Review of Financial Studies, Society for Financial Studies, vol. 21(1), pages 101-133, January.
- Boubaker, Sabri & Labégorre, Florence, 2008. "Ownership structure, corporate governance and analyst following: A study of French listed firms," Journal of Banking & Finance, Elsevier, vol. 32(6), pages 961-976, June.
- Daniel J. Bradley & Bradford D. Jordan & Jay R. Ritter, 2003. "The Quiet Period Goes out with a Bang," Journal of Finance, American Finance Association, vol. 58(1), pages 1-36, 02.
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