EconPapers    
Economics at your fingertips  
 

Quid Pro Quo? What Factors Influence IPO Allocations to Investors?

Tim Jenkinson, Howard Jones and Felix Suntheim

Journal of Finance, 2018, vol. 73, issue 5, 2303-2341

Abstract: Using data from all of the leading international investment banks on 220 initial public offerings (IPOs) raising $160 billion between January 2010 and May 2015, we test the determinants of IPO allocations. We compare investors’ IPO allocations with proxies for their information production during bookbuilding and the broking (and other) revenues they generate for bookrunners. We find evidence consistent with information revelation theories. We also find strong support for the existence of a quid pro quo whereby broking revenues are a significant determinant of investors’ IPO allocations and profits. The quid pro quo remains when we control for unobserved investor characteristics and investor‐bank relationships.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
https://doi.org/10.1111/jofi.12703

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jfinan:v:73:y:2018:i:5:p:2303-2341

Ordering information: This journal article can be ordered from
http://www.afajof.org/membership/join.asp

Access Statistics for this article

More articles in Journal of Finance from American Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-19
Handle: RePEc:bla:jfinan:v:73:y:2018:i:5:p:2303-2341