Factors affecting investment bank initial public offering market share

This paper examines the effect of several factors on the market share of in vestment banks that act as book managers in initial public offerings (IPOs) between 1984 and 1995. For established banks, IPO first-day returns, one-y ear abnormal performance, abnormal compensation, industry specialization, a nalyst reputation, and association with withdrawn offers have a significant impact on changes in market share. These factors have a more significant e ffect on market share changes in low-volume IPO markets. These factors have a less significant effect on market share, statistically and economically, for less established banks, consistent with the notion that less reputatio n is placed at risk. (C) 2000 Elsevier Science S.A. All rights reserved. JE L classification: G24; C21.