Do Initial Public Offering Firms Purchase Analyst Coverage with Underpricing

By Michael T. Cliff, David J. Denis. 2004

396 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/b68a154630ea527b072ef5d9423a94b8e12bbac2

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Citations in the corpus

Religious Beliefs, Gambling Attitudes, and Financial Market Outcomes (2011, background): “The set of independent variables includes the religion measures, the county level demographic characteristics, and the following determinants of initial day return identified in the recent IPO literature (e.g., Purnanandam and Swaminathan, 2004; Loughran and Ritter, 2004; Cliff and Denis, 2004): (i)”
Strength of Analyst Coverage Following IPOs (2006, background): “If continued favorable coverage is one way to ensure being retained in followon offerings with the issuing firm, as Krigman et al. (2001), Cliff and Denis (2004) and others suggest, then the strength of lead analyst coverage should change little over time.”
Are IPO Allocations for Sale? Evidence from Mutual Funds (2006, positive): “Along these lines, Cliff and Denis (2004) provide evidence that issuers used underpricing to acquire coverage by all-star analysts.”
Analysts’ Forecasts and Asset Pricing: A Survey (2016, neutral): “…examines the link between investment banking incentives and analysts coverage decisions (e.g., Dunbar, 2000; Krigman et. al., 2001; Bradley et al., 2003; Cliff and Denis, 2004; Ljungqvist et. al., 2006; O'Brien et al., 2005; James and Karceski, 2006; McNichols et al., 2007; Clarke et al., 2007).”
Analyst Behavior Following IPOs: The “Bubble Period” Evidence (2008, background): “Consistent with this view, Cliff and Denis (2004) provide evidence that issuing firms pay for analyst coverage indirectly through underpricing, particularly if the lead underwriter employs an Institutional Investor all-star analyst.”
Managerial Agents Watching other Agents: Multiple Agency Conflicts Regarding Underpricing in IPO Firms (2008, background): “1 Although underpricing can help an underwriter create a market for an IPO, it can also be seen as a “payment for analyst coverage” at the time of the IPO by the firm issuing the stock ( Cliff & Denis, 2004 ).”
The Economic Consequences of IPO Spinning (2010, neutral): “This switch rate is similar to the 30% that Krigman, Shaw, and Womack (2001) report and the 33.5% that Cliff and Denis (2004) report.”
Equilibrium in the Initial Public Offerings Market (2011, result): “Empirically, Liu and Ritter (2011) find that for U.S. IPOs from 1993-2008, if a bookrunner has an all-star analyst who covers the firm within 12 months of the offer date, the first-day return is 9% higher, consistent with the findings of Cliff and Denis (2004).”
Standing out from the crowd: the visibility-enhancing effects of IPO-related signals on alliance formation by entrepreneurial firms (2007, background): “Analyst coverage Receiving analyst coverage is critical for public companies (Rao et al., 2001; Zuckerman, 1999), particularly for newly public firms (Cliff and Denis, 2004; Krigman et al., 2001).”
IPO Research in Management and Entrepreneurship: Moving the Agenda Forward (2009, background): “Others suggest that underpricing represents a payment for analyst coverage by the IPO firm issuing the stock (Cliff & Denis, 2004).”
Analyst Coverage and Financing Decisions (2006, background): “Others (e.g., Lowry and Shu (2002) and Cliff and Denis (2004)) have followed a comparable strategy.”
What Determine Financial Analysts' Career Outcomes During Mergers? (2009, background): “11 For instance, Cliff and Denis (2004) attribute part of the IPO underpricing during this period to compensation for star analysts’ research coverage.”
Broker-Hosted Investor Conferences (2014, background): “Previous work suggests issuers reward underwriters that publish high quality research (e.g., Krigman et al., 2001; Cliff and Denis, 2005).”