Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Are IPO Allocations for Sale? Evidence from Mutual Funds

Jonathan Reuter
The Journal of Finance
Vol. 61, No. 5 (Oct., 2006), pp. 2289-2324
Published by: Wiley for the American Finance Association
Stable URL: http://www.jstor.org/stable/3874711
Page Count: 36
  • Read Online (Free)
  • Download ($33.95)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Are IPO Allocations for Sale? Evidence from Mutual Funds
Preview not available

Abstract

Combining data on brokerage commissions that mutual fund families paid for trade execution between 1996 and 1999 with data on mutual fund holdings of initial public offerings (IPOs), I document a robust, positive correlation between commissions paid to lead underwriters and reported holdings of the IPOs they underwrite. Moreover, I find that the correlation is limited to IPOs with nonnegative first-day returns and strongest for IPOs that occur shortly before mutual funds report their holdings, when the noise introduced by flipping is smallest. Overall, the evidence suggests that business relationships with lead underwriters increase investor access to underpriced IPOs.

Page Thumbnails

  • Thumbnail: Page 
2289
    2289
  • Thumbnail: Page 
2290
    2290
  • Thumbnail: Page 
2291
    2291
  • Thumbnail: Page 
2292
    2292
  • Thumbnail: Page 
2293
    2293
  • Thumbnail: Page 
2294
    2294
  • Thumbnail: Page 
2295
    2295
  • Thumbnail: Page 
2296
    2296
  • Thumbnail: Page 
2297
    2297
  • Thumbnail: Page 
2298
    2298
  • Thumbnail: Page 
2299
    2299
  • Thumbnail: Page 
2300
    2300
  • Thumbnail: Page 
2301
    2301
  • Thumbnail: Page 
2302
    2302
  • Thumbnail: Page 
2303
    2303
  • Thumbnail: Page 
2304
    2304
  • Thumbnail: Page 
2305
    2305
  • Thumbnail: Page 
2306
    2306
  • Thumbnail: Page 
2307
    2307
  • Thumbnail: Page 
2308
    2308
  • Thumbnail: Page 
2309
    2309
  • Thumbnail: Page 
2310
    2310
  • Thumbnail: Page 
2311
    2311
  • Thumbnail: Page 
2312
    2312
  • Thumbnail: Page 
2313
    2313
  • Thumbnail: Page 
2314
    2314
  • Thumbnail: Page 
2315
    2315
  • Thumbnail: Page 
2316
    2316
  • Thumbnail: Page 
2317
    2317
  • Thumbnail: Page 
2318
    2318
  • Thumbnail: Page 
2319
    2319
  • Thumbnail: Page 
2320
    2320
  • Thumbnail: Page 
2321
    2321
  • Thumbnail: Page 
2322
    2322
  • Thumbnail: Page 
2323
    2323
  • Thumbnail: Page 
2324
    2324