Dambra, Michael
[Verfasser:in]
;
Field, Laura Casares
[Sonstige Person, Familie und Körperschaft];
Gustafson, Matthew
[Sonstige Person, Familie und Körperschaft];
Pisciotta, Kevin
[Sonstige Person, Familie und Körperschaft]
The Consequences to Analyst Involvement in the IPO Process
Anmerkungen:
In: Journal of Accounting & Economics (JAE), Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 2, 2018 erstellt
Beschreibung:
The JOBS Act allows certain analysts to be more involved in the IPO process, but does not relax restrictions on analyst compensation structure. We find that these analysts initiate coverage that is more optimistically biased, less accurate, and generates smaller stock market reactions. Investors purchasing shares following these initiations lose over 3% of their investment by the firm's subsequent earnings release. By contrast, issuers, analysts, and investment banks appear to benefit from this increased bias, as optimism is more positively associated with proxies for firm visibility and investment banking revenues when analysts are involved in the IPO process