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dc.contributor.authorKulkarni, Kedar S.
dc.contributor.authorSabarwal, Tarun
dc.date.accessioned2012-04-16T17:52:46Z
dc.date.available2012-04-16T17:52:46Z
dc.date.issued2007
dc.identifier.citation"Kulkarni, Kedar and Tarun Sabarwal (2007): “To What Extent Are Investment Bank-Differentiating Factors Relevant For Firms Floating Moderate-Sized IPOs?” http://dx.doi.org/10.1007/s10436-006-0054-y Annals of Finance, 3(3), July, 297-327.
dc.identifier.urihttp://hdl.handle.net/1808/9018
dc.descriptionThe original publication is available at www.springerlink.com.
dc.description.abstractOne explanation provided for the relatively high and increasingly stable spreads for moderate-sized IPOs ($20-$80 million) documented in Chen and Ritter (2000) is that issuing firms focus less on price and more on a combination of investment bank-differentiating factors (such as underwriter prestige, analyst coverage, industry expertise, under-pricing, price stabilization activities, liquidity provision, and so on,) and banks use industry-based differentiation as a source of market power. Using a new approach developed in a model of firm location choice due to Ellison and Glaeser (1997), this paper presents some evidence on the combined relevance of such bank-differentiating factors, over and above bank size, for firms choosing investment banks for floating IPOs. For moderate-sized IPOs, there is a little, but not much evidence that such factors are a good explanation for high and increasingly stable spreads. Other than in a few of the largest industries, bank-differentiating factors are not significantly relevant for a large proportion of industries. Moreover, one aggregate measure of differentiation is declining over time.
dc.language.isoen_US
dc.publisherSpringer-Verlag
dc.titleTo What Extent Are Investment Bank-Differentiating Factors Relevant For Firms Floating Moderate-Sized IPOs?
dc.typeArticle
kusw.kuauthorSabarwal, Tarun
kusw.kudepartmentEconomics
kusw.oastatusfullparticipation
dc.identifier.doi10.1007/s10436-006-0054-y
kusw.oaversionScholarly/refereed, author accepted manuscript
kusw.oapolicyThis item meets KU Open Access policy criteria.
dc.rights.accessrightsopenAccess


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