Underwriter deal pipeline and the pricing of IPOs

Kevin K. Boeh and Craig Dunbar

Journal of Financial Economics, 2016, vol. 120, issue 2, 383-399

Abstract: This study examines how initial public offering (IPO) pricing is affected by the pipeline of deals in registration, measured at the underwriter level. Examining IPOs from 2002 to 2013, we find evidence that measures of the IPO bookrunner's pipeline significantly affect pricing decisions. The evidence is mostly consistent with market power and agency theories, which argue that underwriters use a young or growing pipeline to push for higher IPO first day returns.

Keywords: Initial public offerings; First pricing; Underwriters; Syndicates; IPO markets; Underpricing (search for similar items in EconPapers)
JEL-codes: C22 G24 G32 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:120:y:2016:i:2:p:383-399

DOI: 10.1016/j.jfineco.2015.08.018

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