Robust determinants of IPO underpricing and their implications for IPO research

B-Tier
Journal: Journal of Corporate Finance
Year: 2014
Volume: 27
Issue: C
Pages: 367-383

Authors (3)

Butler, Alexander W. (Rice University) Keefe, Michael O'Connor (not in RePEc) Kieschnick, Robert (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using several different methodologies, we quantify the statistical robustness of variables used in prior research to explain initial IPO returns. We establish a parsimonious list of robust variables and evaluate their implications for different theories of IPO underpricing and clustering. Further, we illustrate how using such a set of robust explanatory variables leads to several different conclusions than prior research that failed to include these important control variables. Researchers who identify new potential predictors of IPO initial returns should control for the list of robust variables we identify.

Technical Details

RePEc Handle
repec:eee:corfin:v:27:y:2014:i:c:p:367-383
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25