Journal of Banking & Finance Vol. 32 No. 6 2008
Are there long-run implications of analyst coverage for IPOs?
Abstract
Analyst coverage has been cited increasingly as an important attribute in the selection of an underwriter for a firm about to go public. However, it has also been alleged that affiliated analysts provide biased research. In this study, we examine these interrelated issues by examining the long-run performance of IPOs with coverage from their managing underwriters in a 1993–2003 sample. We find that (1) analysts’ research coverage from their managing syndicate is not related to long-run performance; (2) long-run performance is not different for firms that receive all-star analyst coverage; and (3) investors are not systematically worse off for following lead underwriter recommendations.
- DOI
- 10.1016/j.jbankfin.2007.09.021
- Volume
- 32
- Issue
- 6
- Pages
- 1120-1132
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib