Investment bankers and IPO pricing: Does prospectus information matter?

Catherine M. Daily, S. Trevis Certo, Dan R. Dalton

Research output: Contribution to journalArticle

70 Scopus citations

Abstract

In this study, we examine those factors generally considered to impact IPO performance to assess the extent to which investment bankers might utilize this information in determining the spread within which the offering price is likely to be set and in setting the offering price. Interestingly, we find no evidence that the variables investigated are related to either IPO offer price spread or the IPO offer price. The implications of these findings are notable, as they raise the issue of what information might account for investment bankers' valuation decisions, as captured in the offer price spread and offer price.

Original languageEnglish (US)
Pages (from-to)93-111
Number of pages19
JournalJournal of Business Venturing
Volume20
Issue number1
DOIs
StatePublished - Jan 1 2005
Externally publishedYes

Keywords

  • IPO pricing
  • Investment bankers
  • Prospectus information

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation

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