Abstract

http://ssrn.com/abstract=282289
 
 

References (32)



 
 

Citations (89)



 


 



Evidence Of Information Spillovers In The Production Of Investment Banking Services


Lawrence M. Benveniste


University of Minnesota - Twin Cities - Carlson School of Management

Alexander Ljungqvist


New York University (NYU) - Department of Finance; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); Research Institute of Industrial Economics (IFN)

Xiaoyun Yu


Indiana University - Kelley School of Business - Department of Finance; China Academy of Financial Research (CAFR)

William J. Wilhelm


University of Virginia - McIntire School of Commerce



Abstract:     
We present evidence that firms attempting IPOs learn from the experience of their contemporaries. These information spillovers affect revisions in offer terms and the decision whether to carry through with an offering. The evidence also supports the argument that IPOs are implicitly bundled as a means of promoting more equitable sharing of information production costs. One apparent consequence of this behavior is that while initial returns and IPO volume are positively correlated in the aggregate, the correlation is negative among contemporaneous offerings subject to a common valuation factor. These findings are consistent with the Benveniste, Busaba, and Wilhelm (2001) argument that the dynamics of volume and initial returns in primary equity markets reflect, at least in part, an institutional response to information externalities.

Number of Pages in PDF File: 43

Keywords: Initial Public Offerings, investment banking, information externalities, going public decision

JEL Classification: G32, G24

working papers series


Download This Paper

Date posted: September 7, 2001  

Suggested Citation

Benveniste, Lawrence M. and Ljungqvist, Alexander and Yu, Xiaoyun and Wilhelm, William J., Evidence Of Information Spillovers In The Production Of Investment Banking Services. Available at SSRN: http://ssrn.com/abstract=282289 or http://dx.doi.org/10.2139/ssrn.282289

Contact Information

Lawrence M. Benveniste
University of Minnesota - Twin Cities - Carlson School of Management ( email )
321 19th Avenue South
774 Management and Economics
Minneapolis, MN 55455
United States
612-624-4563 (Phone)
612-626-1335 (Fax)
Alexander Ljungqvist
New York University (NYU) - Department of Finance ( email )
Stern School of Business
44 West 4th Street, Suite 9-160
New York, NY 10012-1126
United States
212-998-0304 (Phone)
212-995-4220 (Fax)
HOME PAGE: http://pages.stern.nyu.edu/~aljungqv
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
Research Institute of Industrial Economics (IFN) ( email )
Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
Xiaoyun Yu (Contact Author)
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States
812-855-3521 (Phone)
812-855-5875 (Fax)

China Academy of Financial Research (CAFR)
1954 Huashan Road
Shanghai P.R.China, 200030
China

William J. Wilhelm
University of Virginia (UVA) - McIntire School of Commerce ( email )
Rouss & Robertson Halls, East Lawn
P.O. Box 400173
Charlottesville, VA 22904-4173
United States
434-924-7666 (Phone)
434-924-7074 (Fax)
HOME PAGE: http://gates.comm.virginia.edu/wjw9a/
Feedback to SSRN


Paper statistics
Abstract Views: 3,861
Downloads: 1,021
Download Rank: 9,096
References:  32
Citations:  89
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.609 seconds