Beschreibung:
There is quid pro quo in auctioned IPOs. Using proprietary data on uniform-pricing IPO auctions, we show when the share allocation rule shifted from pro rata to lottery draw, fund families having pre-shift stronger brokerage commission ties with the underwriter submit bids later, place more strategic but accurate e bids, have more bids qualified for the allocation round, and are more likely to receive share allocation than fund families that have weaker commission ties with the underwriter before the regime change. The evidence supports quid pro quo in IPO auctions facilitated by the underwriter’s leakage of confidential bidding information