This paper examines underwriters' pricing errors and the information content of first-day trading activity in IPOs. We show that first-day winners continue to be winners over the first year, and first-day dogs continue to be relative dogs. Exceptions are "extra-hot" IPOs, which provide the worst...

Managers of firms going public usually do not sell their own shares at the initial public offering. Instead, they often sell a portion of their shares at the end of the lockup period. We develop a model in which the manager strategically underprices the IPO in order to maximize his wealth from...

During the mid-1990s, 30% of firms that completed a seasoned equity offering (SEO) within three years of their initial public offering (IPO) switched lead underwriter. This article provides evidence on why they switched. Contrary to predictions of prior research, there is little evidence that...