Issuers of initial public offerings (IPOs) can report earnings in excess of cash flows by taking
positive accruals. This paper provides evidence that issuers with unusually high accruals in …

We analyze the empirical power and specification of test statistics in event studies designed
to detect long-run (one-to five-year) abnormal stock returns. We document that test statistics …

This paper analyzes institutional investors' demand for stock characteristics and the
implications of this demand for stock prices and returns. We find that “large” institutional …

We find that the underperformance of IPO stocks relative to the market over a three‐year
holding period is less severe for IPOs handled by more prestigious underwriters. Consistent …

We investigate the long‐run underperformance of recent initial public offering (IPO) firms in a
sample of 934 venture‐backed IPOs from 1972–1992 and 3,407 nonventure‐backed IPOs …

We model an IPO company's optimal response to the presence of sentiment
investors.“Regular” investors are allocated stock that they subsequently sell to sentiment …

This paper analyzes the effect of different IPO mechanisms on the structure of share
ownership and explores the role of underpricing and rationing in determining investors' …

This paper examines underwriters' pricing errors and the information content of first‐day
trading activity in IPOs. We show that first‐day winners continue to be winners over the first …

There is a general perception that the large trading volume in initial public offerings is mostly
due to “flippers” that are allocated shares in the offering and immediately resell them. On …

Consistent with institutions having an advantage over individuals, we find that newly public
firms with the highest levels of institutional investment significantly outperform those with the …