IPO pricing and allocation: a survey of the views of institutional investors

Jenkinson, Tim and Jones, Howard (2009) IPO pricing and allocation: a survey of the views of institutional investors. The Review of Financial Studies, 22 (4). pp. 1477-1504.

Abstract

Despite the central importance of investors to all initial public offering (IPO) theories, relatively little is known about their role in practice. This article is based on a survey of how institutional investors assess IPOs, what information they provide to the investment banking syndicate, and the factors they believe influence allocations. We find that investor characteristics, in particular brokerage relationships with the bookrunner, are perceived to be the most important factors influencing allocations, which supports the view that IPO allocations are part of implicit quid pro quo deals with investment banks. The survey raises doubts as to the extent of information production or revelation.

Item Type: Article
Keywords: institutional investors; investment banking; consumer lending; portfolio management; finance
Subject(s): Finance
Date Deposited: 26 Oct 2011 14:44
Last Modified: 27 Feb 2017 13:47
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/1042

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