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- W2020851572 abstract "This paper examines the effect of several factors on the market share of investment banks that act as book managers in initial public offerings (IPOs) between 1984 and 1993. For established banks, IPO underpricing has a negative impact on market share, suggesting future issuers avoid banks that leave too much money on the table. While average abnormal long-run performance has a positive impact on established bank's market share, association with extremely positive long-run performance damages market share. Abnormal underwriter compensation (cash spread plus expenses) has a positive impact on the market share of established banks. Since these banks expect increased future market share they place more at risk in current offerings and, therefore, charge higher compensation. Investment banks concentrating their activities in fewer industries lose market share. Banks marketing IPOs in January or on Mondays also lose market share. Finally, association with withdrawn IPOs has a significantly negative effect on an investment bank's ability to compete for future offerings. These factors have a less significant effect, statistically and economically, on the market share of less established banks, consistent with the notion that less reputation is placed at risk." @default.
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- W2020851572 date "1997-01-01" @default.
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- W2020851572 title "Factors Affecting Investment Bank Initial Public Offering Market Share" @default.
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- W2020851572 doi "https://doi.org/10.2139/ssrn.38480" @default.
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