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First published in Global Finance Journal, v63 (2024) published by Elsevier Inc. DOI: https://doi.org/10.1016/j.gfj.2024.101043

Document Type

Article

Publication Version

Published Version

Keywords

Aftermarket support, Analyst coverage, Compensation, Delisting, Monday IPOs, Offer price revisions, Underwriting syndicate

Journal/Book/Conference Title

Global Finance Journal

Volume

63

First Page

1

Last Page

17

Abstract

This paper investigates how and why initial public offerings (IPOs) issued on Mondays differ from those on other days. We provide evidence that Monday IPOs make a significantly larger number of filing price amendments during the road show and set offer prices that exceed the filing price range, resulting in higher positive offer price revisions. We also find that Monday IPOs receive less analyst coverage than other-day IPOs, despite their underwriting fees being the same and their total underwriter compensation being higher. Therefore, Monday IPOs are more likely to change lead underwriters in subsequent equity offerings and have a higher risk of delisting as aftermarket support and maintaining good relations with investment banks are critical for their long run survival. We also investigate why underwriters issue IPOs on Mondays. We suggest four possible explanations for Monday IPOs and find indirect evidence that supports the deliberate road show extension explanation.

Department

Department of Finance

Original Publication Date

12-1-2024

Object Description

1 PDF File

DOI of published version

10.1016/j.gfj.2024.101043

Repository

UNI ScholarWorks, Rod Library, University of Northern Iowa

Copyright

©2024 The Author(s). This is an open access article under the CC BY license.

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Language

en

File Format

application/pdf

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