The Relationship between IPO Underpricing Phenomenon & the Underwriter’s Reputation
The primary focus is on studying the under pricing phenomenon in Indian IPO markets. The paper examines the link between the reputation of underwriters to an IPO issue & the level of under pricing of that issue. The underwriters of high reputation have a pricing behavior which is distinct from underwriters in other markets. The investment banks are compared on the basis of the number of issues managed; deal value, syndicate size etc & the top banks were found to under price less as compared to their lower ranked counterparts. The post listing returns are directly related to the number of times the IPO issue is oversubscribed. The study is based on Indian IPO offerings.
Volume (Year): 13 (2010)
Issue (Month): 38 (December)
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- Randolph P. Beatty & Jay R. Ritter, "undated". "Investment Banking, Reputation and the Underpricing of Initial Public Offerings," Rodney L. White Center for Financial Research Working Papers 02-85, Wharton School Rodney L. White Center for Financial Research.
- Randolph P. Beatty & Jay R. Ritter, "undated". "Investment Banking, Reputation and the Underpricing of Initial Public Offerings," Rodney L. White Center for Financial Research Working Papers 2-85, Wharton School Rodney L. White Center for Financial Research.
- Kirkulak, Berna & Davis, Colin, 2005. "Underwriter reputation and underpricing: Evidence from the Japanese IPO market," Pacific-Basin Finance Journal, Elsevier, vol. 13(4), pages 451-470, September.
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- Rock, Kevin, 1986. "Why new issues are underpriced," Journal of Financial Economics, Elsevier, vol. 15(1-2), pages 187-212.
- Yoram Barzel, 2006. "Prevention Is Better than Cure: The Role of IPO Syndicates in Precluding Information Acquisition," The Journal of Business, University of Chicago Press, vol. 79(6), pages 2911-2924, November. Full references (including those not matched with items on IDEAS)
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