Affiliated mutual funds and the allocation of initial public offerings

被引：89

作者：

Ritter, Jay R. ^{[1
]}

Zhang, Donghang

机构：

[1] Univ Florida, Warrington Coll Business, Gainesville, FL 32611 USA

[2] Univ S Carolina, Moore Sch Business, Columbia, SC 29208 USA

来源：

JOURNAL OF FINANCIAL ECONOMICS | 2007年 / 86卷 / 02期

关键词：

initial public offerings; mutual funds; IPO allocations;

D O I：

10.1016/j.jfineco.2006.08.005

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine how investment banks use initial public offerings (IPOs) in relation to their affiliated mutual funds. The dumping ground hypothesis predicts that the lead underwriter allocates cold IPOs to its affiliated funds so that more deals can be completed when demand for these IPOs is weak. Affiliated funds could also receive more cold IPOs because the lead underwriter uses allocations of hot IPOs to unaffiliated funds to gain trading commission business. The nepotism hypothesis predicts that the lead underwriter allocates hot IPOs to its affiliated funds to boost their performance and thus attract more money. We find little evidence supporting the dumping ground hypothesis, although some evidence supports the nepotism hypothesis, especially during the internet bubble period of 1999-2000. (c) 2007 Elsevier B.V. All rights reserved.

引用

页码：337 / 368

页数：32

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