Does Underwriter Reputation Affect the Performance of IPO Stocks?

• Main Authors: WU, Chunchi, LIU, Sheen, WANG, Junbo
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2003
• Subjects: IPO; Stock Market; Stocks; China; Asian Studies; Business; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/834; https://ink.library.smu.edu.sg/context/lkcsb_research/article/1833/viewcontent/Does_Underwriter_Reputation_Affect_the_Performance_of_IPO_Issues_.pdf
• Institution: Singapore Management University

In this paper we examine the relationship between performance of the Chinese IPO firms and the reputation of investment bankers underwriting their stocks. Similar to previous studies on well-developed stock markets, we find that the initial return on the first day of trading is strongly positive for...