Presence of analyst before IPO and underpricing: a Meta-analysis.
The effect of analyst presence on underpricing has shown a contrasting result. By synthesizing the result using meta-analysis for twelve studies with more than 20400 firms we found conclusive evidence of the relation between analyst presence and underpricing of IPOs. With the increase in analyst pr...
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Tuwhera Open Access Publisher
2021
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oai:doaj.org-article:5d5e6c0c2da94157b34b5af68876ca9a2021-11-09T14:02:52ZPresence of analyst before IPO and underpricing: a Meta-analysis.10.24135/afl.v10i.4312253-57992253-5802https://doaj.org/article/5d5e6c0c2da94157b34b5af68876ca9a2021-11-01T00:00:00Zhttps://ojs.aut.ac.nz/applied-finance-letters/article/view/431https://doaj.org/toc/2253-5799https://doaj.org/toc/2253-5802 The effect of analyst presence on underpricing has shown a contrasting result. By synthesizing the result using meta-analysis for twelve studies with more than 20400 firms we found conclusive evidence of the relation between analyst presence and underpricing of IPOs. With the increase in analyst presence by 1% the IPO underpricing increases by 4.9%. Moreover, meta-regression between effect size and moderator variables found the significant and positive role of the reputed underwriter to increase underpricing when the IPO has coverage of analysts. Our results are striking for the US market IPOs in which reputed underwriters as moderator affect underpricing significantly and positively which shows reputation increase information asymmetry. Whereas in emerging markets IPOs reputed underwriters increase market efficiency and information symmetry. Udayan KarnatakChirag MalikTuwhera Open Access PublisherarticleFinanceHG1-9999ENApplied Finance Letters, Vol 10 (2021) |
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DOAJ |
| collection |
DOAJ |
| language |
EN |
| topic |
Finance HG1-9999 |
| spellingShingle |
Finance HG1-9999 Udayan Karnatak Chirag Malik Presence of analyst before IPO and underpricing: a Meta-analysis. |
| description |
The effect of analyst presence on underpricing has shown a contrasting result. By synthesizing the result using meta-analysis for twelve studies with more than 20400 firms we found conclusive evidence of the relation between analyst presence and underpricing of IPOs. With the increase in analyst presence by 1% the IPO underpricing increases by 4.9%. Moreover, meta-regression between effect size and moderator variables found the significant and positive role of the reputed underwriter to increase underpricing when the IPO has coverage of analysts. Our results are striking for the US market IPOs in which reputed underwriters as moderator affect underpricing significantly and positively which shows reputation increase information asymmetry. Whereas in emerging markets IPOs reputed underwriters increase market efficiency and information symmetry.
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| format |
article |
| author |
Udayan Karnatak Chirag Malik |
| author_facet |
Udayan Karnatak Chirag Malik |
| author_sort |
Udayan Karnatak |
| title |
Presence of analyst before IPO and underpricing: a Meta-analysis. |
| title_short |
Presence of analyst before IPO and underpricing: a Meta-analysis. |
| title_full |
Presence of analyst before IPO and underpricing: a Meta-analysis. |
| title_fullStr |
Presence of analyst before IPO and underpricing: a Meta-analysis. |
| title_full_unstemmed |
Presence of analyst before IPO and underpricing: a Meta-analysis. |
| title_sort |
presence of analyst before ipo and underpricing: a meta-analysis. |
| publisher |
Tuwhera Open Access Publisher |
| publishDate |
2021 |
| url |
https://doaj.org/article/5d5e6c0c2da94157b34b5af68876ca9a |
| work_keys_str_mv |
AT udayankarnatak presenceofanalystbeforeipoandunderpricingametaanalysis AT chiragmalik presenceofanalystbeforeipoandunderpricingametaanalysis |
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1718441017382797312 |