IPO Characteristics of Index Firms
26 Pages Posted: 21 Nov 2009 Last revised: 15 Oct 2013
Date Written: December 27, 2012
Abstract
This study analyzes the IPOs of the firms that are eventually included in one of the three well-known indices: the S&P 400, the S&P 500, or the S&P 600 Indices. The determinants of each IPO firm's odds of inclusion into a particular index are estimated. Other offer related characteristics of these index firms are also investigated. IPOs that are associated with less uncertainty at the time of issuance, have better inclusion odds into an index. The quality of index firms has a persistent component to it that can be detected even during the IPO process. A new hypothesis is proposed with regard to the possible biases of the Standard&Poor's Index Committee.
Keywords: Initial Public Offerings, S&P 400, S&P 500, S&P 600
JEL Classification: E32, G10, G24, G30
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Institutional Investors and Equity Prices
By Paul A. Gompers and Andrew Metrick
-
New Evidence on Stock Price Effects Associated with Charges in the S&P 500 Index
-
Limited Arbitrage in Mergers and Acquisitions
By Malcolm P. Baker and Serkan Savasoglu
-
The Demand for Stocks: An Analysis of IPO Auctions
By Shmuel Kandel (deceased), Oded Sarig, ...
-
Arbitrage Risk and the Book-to-Market Anomaly
By Ashiq Ali, Lee-seok Hwang, ...