SAIF Seminar Series (13)
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Topic: | SAIF Seminar Series (13) | |
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Time: | Monday , 2010-09-13 12:00-08:00 | |
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Speaker: | , | |
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Affiliations: | University of Florida | |
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Topic:
SAIF Seminar Series (13)
Time:
星期四,2010-09-13 10:30-12:00
Venue:
Speaker:
Jay Ritter
Local Underwriter Oligopolies and IPO Underpricing
Introduction of the seminar:
Even though a large number of investment banks compete for initial public offerings (IPOs), we posit that the real competition takes place in a series of local oligopolies based on industry specialization. We develop a non-price competition theory of IPO underpricing based on localized competition and differentiated IPO underwriting services. We test our model implications on all-star analyst coverage, industry expertise, and other non-price dimensions. Together, the non-price dimensions account for approximately 30% of the observed underpricing. Furthermore, we posit that venture capitalists (VCs) are especially focused on allstar analyst coverage, and develop the analyst lust theory of the underpricing of VC-backed IPOs. Consistent with this theory, we find that VC’s desire for all-star analyst coverage explains more than 50% of the effect of VC-backing on IPO underpricing.
Speaker Personal Information:
Homepage：http://bear.warrington.ufl.edu/ritter/
Research Interests: Initial Public Offerings, Asset Pricing, Valuation, and Investment Banking
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