Do Today's Trades Affect Tomorrow's IPO Allocations?

165 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

Affiliated Mutual Funds and the Allocation of Initial Public Offerings (2007, unknown): “This subperiod, often referred to as the internet bubble period, is characterized as a hot IPO market with severe underpricing and aggressive commission payments (Nimalendran et al., 2006).”
Brokerage Commissions and Institutional Trading Patterns (2009, unknown): “A broker’s best institutional clients get larger allocations of “hot” IPOs, and the larger profits associated with them (Fulghieri and Spiegel 1993; Nimalendran, Ritter, and Zhang 2007).20 It is obvious that brokers cannot explicitly charge for this service, and so they allocate shares to those who…”
Local Underwriter Oligopolies and IPO Underpricing (2011, unknown): “First, underwriters can allocate underpriced shares to investors in exchange for soft dollar commission business (Loughran and Ritter, 2002, 2004; Reuter, 2006; Hoberg, 2007; and Nimalendran, Ritter, and Zhang, 2007).”
Purchasing IPOs with Commissions (2011, unknown): “Reuter (2006) uses mutual fund family holdings as a proxy for IPO allocations.”
Equilibrium in the Initial Public Offerings Market (2011, background): “Nimalendran, Ritter, and Zhang (2007) document that trading volume in non-IPO stocks is unusually high immediately surrounding hot IPOs.”