Robust determinants of IPO underpricing and their implications for IPO research

Alexander Butler, Michael O'Connor Keefe and Robert Kieschnick

Journal of Corporate Finance, 2014, vol. 27, issue C, 367-383

Abstract: Using several different methodologies, we quantify the statistical robustness of variables used in prior research to explain initial IPO returns. We establish a parsimonious list of robust variables and evaluate their implications for different theories of IPO underpricing and clustering. Further, we illustrate how using such a set of robust explanatory variables leads to several different conclusions than prior research that failed to include these important control variables. Researchers who identify new potential predictors of IPO initial returns should control for the list of robust variables we identify.

Keywords: IPO; Initial returns; Underpricing; Underwriting; Going public (search for similar items in EconPapers)
JEL-codes: G12 G24 G30 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:27:y:2014:i:c:p:367-383

DOI: 10.1016/j.jcorpfin.2014.06.002

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