Journal of Financial Economics Vol. 37 No. 2 1995
Evidence on the strategic allocation of initial public offerings
Abstract
The evidence reported in this paper suggests that institutional investors capture a large fraction of the short-run profits associated with IPOs. The favored status enjoyed by institutional investors in underpriced offerings appears, however, to carry a quid pro quo expectation that they will participate in less-attractive issues as well. This finding conforms with the Benveniste and Spindt (1989) and Benveniste and Wilhelm (1990) prediction that U.S. underwriters behave strategically in the allocation of IPOs.
- DOI
- 10.1016/0304-405x(94)00797-5
- Volume
- 37
- Issue
- 2
- Pages
- 239-257
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref