Underwriter reputation : does it matter?

• Autor(a) principal: Ribeiro, Ana Catarina da Costa
• Data de Publicação: 2016
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/20263
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

We show that, between 1980 and 2011, IPOs underwritten by lead underwriters with a higher reputational level tend to have higher first-day returns and less negative market-adjusted long-run returns. Furthermore, we find evidence that the best measures for explaining the behaviour of the market-adjusted initial return and long-run return of the IPOs are the yearly market-share by gross proceeds and the Carter-Manaster (CM) rank, respectively. However, when considering the full sample divided into three periods, only the 80s present contrary results when it comes to the initial returns: IPOs underwritten by low prestige investment banking firms tend to have higher first-day returns. Moreover, the measures that best explain the changes in the first-day returns are the CM and the Gross Spread (GS) rankings.