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- Title
The Quiet Period Goes out with a Bang.
- Authors
BRADLEY, DANIEL J.; JORDAN, BRADFORD D.; RITTER, JAY R.
- Abstract
We examine the expiration of the IPO quiet period, which occurs after the 25th calendar day following the offering. For IPOs during 1996 to 2000, we find that analyst coverage is initiated immediately for 76 percent of these firms, almost always with a favorable rating. Initiated firms experience a five-day abnormal return of 4.1 percent versus 0.1 percent for firms with no coverage. The abnormal returns are concentrated in the days just before the quiet period expires. Abnormal returns are much larger when coverage is initiated by multiple analysts. It does not matter whether a recommendation comes from the lead underwriter or not.
- Subjects
UNITED States; GOING public (Securities); FINANCIAL analysts; CORPORATE finance; INVESTOR relations (Corporations); UNITED States. Securities &; Exchange Commission; INVESTMENT advisors; EXPECTED returns; STATISTICAL sampling; INVESTMENT analysis
- Publication
Journal of Finance (Wiley-Blackwell), 2003, Vol 58, Issue 1, p1
- ISSN
0022-1082
- Publication type
Article
- DOI
10.1111/1540-6261.00517