Liu, Xiaoding; Ritter, Jay R. - In: Review of Financial Studies 23 (2010) 5, pp. 2024-2059
Using a sample of fifty-six companies going public in 1996--2000 in which top executives received allocations of other hot initial public offerings (IPOs) from the bookrunner, a practice known as spinning, we examine the consequences of spinning. The fifty-six IPOs had first-day returns that...