Banks, IPO underwriting, and allocation in Japan

Investment Banks' Entry into New IPO Markets and IPO Underpricing

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Bond underwriting syndicates organized by commercial banks: evidence from prewar Japan

The purpose of this paper is to empirically examine the nature of bond underwriting syndicates organized by commercial banks. I use a unique data set from Japan during a prewar period when banks were permitted to underwrite corporate bonds. The paper shows that risk aversion led to a greater tendency for investment houses to form a syndicate than commercial banks. The evidence is consistent wit...

Conflicts of Interest and Research Quality of Affiliated Analysts: Evidence from IPO Underwriting

The quality of financial analysts’ equity research is pivotal for an efficient capital market. This study investigates the quality of earnings forecasts and stock recommendations for initial public offerings (IPOs) in Germany. The empirical study includes 12,605 earnings forecasts and 6,209 stock recommendations of individual analysts for the time period from 1997 to 2004. The focus of this stu...

The Impact on IPO Assurance Fees of Commercial Bank Entry into the Equity Underwriting Market

Institutional Bidding in Ipo Allocation: Evidence from China

Using a proprietary database of institutional investor bidding for shares in Chinese IPO allocations, we examine the information content and predictive ability of bidding dispersion. IPOs with higher levels of bid dispersion experience greater first-day return than other IPOs by discounting the offer price as a compensation for investors’ bearing valuation uncertainty and estimation risk, as we...