Underwriter Reputation and Short-Run IPO Returns: A Re-Evaluation for an Emerging Market

39 Pages Posted: 7 Aug 2008

See all articles by Nuray Guner

Nuray Guner

Middle East Technical University - Department of Business Administration

Zeynep Onder

Bilkent University - Faculty of Business Administration

Seza Danisoglu Rhoades

Middle East Technical University - Department of Business Administration

Date Written: January 2004

Abstract

This study examines the effect of underwriter reputation on the initial-day IPO returns in an emerging market. It uses both a traditional and an extended model given the characteristics of the IPO market under analysis. The results from the traditional model indicate that underwriter reputation does not affect the initial day IPO returns. However, after controlling for factors that are important in determining the price of an IPO in an emerging market, a complex relationship between underwriter reputation measures and IPO returns is documented. Results in this paper indicate that it is not appropriate to extend the findings in the US to other markets without taking into account the unique characteristics of these markets.

Suggested Citation

Guner, Nuray and Onder, Zeynep and Rhoades, Seza Danisoglu, Underwriter Reputation and Short-Run IPO Returns: A Re-Evaluation for an Emerging Market (January 2004 ). Available at SSRN: https://ssrn.com/abstract=495742 or http://dx.doi.org/10.2139/ssrn.495742

Nuray Guner

Middle East Technical University - Department of Business Administration ( email )

Ankara, 06531
Turkey
(90)(312) 210 3075 (Phone)
(90)(312) 210 1243 (Fax)

Zeynep Onder

Bilkent University - Faculty of Business Administration ( email )

06533 Bilkent, Ankara
Turkey
(90)(312) 290 2038 (Phone)
(90)(312) 266 4958 (Fax)

Seza Danisoglu Rhoades (Contact Author)

Middle East Technical University - Department of Business Administration ( email )

Ankara, 06531
Turkey
(90)(312) 210 2035 (Phone)
(90)(312) 210 1243 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
344
Abstract Views
1,779
rank
107,850
PlumX Metrics