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To What Extent Are Investment Bank-Differentiating Factors Relevant For Firms Floating Moderate-Sized IPOs?
dc.contributor.author | Kulkarni, Kedar S. | |
dc.contributor.author | Sabarwal, Tarun | |
dc.date.accessioned | 2012-04-16T17:52:46Z | |
dc.date.available | 2012-04-16T17:52:46Z | |
dc.date.issued | 2007 | |
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.uri | http://hdl.handle.net/1808/9018 | |
dc.description | The original publication is available at www.springerlink.com. | |
dc.description.abstract | One 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.iso | en_US | |
dc.publisher | Springer-Verlag | |
dc.title | To What Extent Are Investment Bank-Differentiating Factors Relevant For Firms Floating Moderate-Sized IPOs? | |
dc.type | Article | |
kusw.kuauthor | Sabarwal, Tarun | |
kusw.kudepartment | Economics | |
kusw.oastatus | fullparticipation | |
dc.identifier.doi | 10.1007/s10436-006-0054-y | |
kusw.oaversion | Scholarly/refereed, author accepted manuscript | |
kusw.oapolicy | This item meets KU Open Access policy criteria. | |
dc.rights.accessrights | openAccess |