Abstract

There has been evidence in the literature of the IPOs underpricing. This paper studies the relationship between underwriter’s reputation and the degree of underpricing in the secondary market. Study analyzes underpricing in the U.S. stock exchange markets (the NYSE and Nasdaq) in 2017. Cross-sectional OLS regression is used to test the hypothesis of the negative relationship between underwriters’ reputation and the underpricing in the secondary market. The results do not suggest the significant relationship between two factors, however, show that the percentage of insider shares held by the issuing company have a negative relationship with the underpricing and that the NYSE is associated with the lower degree of underpricing.

Advisor

Wang, Gang

Department

Business Economics

Disciplines

Finance and Financial Management

Keywords

IPO, Underpricing, Reputation

Publication Date

2018

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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