Strength of analyst coverage following IPOs

被引:54
作者
James, Christopher [1 ]
Karceski, Jason [1 ]
机构
[1] Univ Florida, Warrington Coll Business, Gainesville, FL 32611 USA
关键词
IPO; underpricing; target price; stock recommendation; security analysts;
D O I
10.1016/j.jfineco.2005.09.003
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Firms with poor aftermarket performance are given higher target prices and are more likely to receive strong buy recommendations, especially by analysts affiliated with the lead underwriter. This favorable coverage is relatively short lived, typically lasting less than six months. Controlling for the quantity of coverage received, stock prices of newly public firms increase more when the target price ratio is high and recommendation is a strong buy. These results suggest that when a firm goes public, underwriter-affiliated analysts provide protection in the form of "booster shots" of stronger coverage if the firm experiences poor aftermarket stock performance. (c) 2006 Published by Elsevier B.V.
引用
收藏
页码:1 / 34
页数:34
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