Do Institutions Receive Favorable Allocations in IPOs with Better Long-Run Returns?

• Main Authors: Boehmer, Beatrice, BOEHMER, Ekkehart, Fishe, Raymond P. H.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: Business; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4663; https://doi.org/10.1017/S0022109000002659
• Institution: Singapore Management University

We analyze allocations to institutional and retail investors in 441 initial public offerings (IPOs). In addition to the well-known favorable first-day returns, we show that institutions also obtain more allocations in IPOs with better long-term performance. We find that initial institutional flips h...