Orphan versus non-orphan IPOs: the difference analyst coverage makes

Romain Boissin

MPRA Paper from University Library of Munich, Germany

Abstract: This paper addresses the question of the importance of analyst coverage for the long-run returns of IPO firms over the period from 1991 to 2010. In US IPOs, during the one- to five-year horizon, we find a significant long-run abnormal performance by orphans (IPOs without analyst coverage) compared to non-orphans (IPOs with analyst coverage.Further analysis reveals that this outperformance by non-orphans stems from high analyst coverage. Our results are robust after accounting for venture capital backing, underwriting syndicates, underpricing, institutional investor ownership, or operating performance variables.

Keywords: IPOs; analyst coverage; long-run performance (search for similar items in EconPapers)
JEL-codes: G14 G24 (search for similar items in EconPapers)
Date: 2012-09-20
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Working Paper: Orphan versus non-orphan IPOs: the difference analyst coverage makes (2012)
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