Are IPO Allocations for Sale? Evidence from Mutual Funds

Abstract

Combining data on explicit brokerage commissions that mutual fund families paid for trade execution between 1996 and 1999 with data on mutual fund holdings of initial public offerings (IPOs), I document a robust positive correlation between commissions paid to lead underwriters and reported holdings of the IPOs they underwrote. Moreover, I find that the… (More)

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Cite this paper

@inproceedings{Reuter2005AreIA, title={Are IPO Allocations for Sale? Evidence from Mutual Funds}, author={J. Reuter}, year={2005} }