Selection versus Talent Effects on Firm Value

We thank Toni Whited (Editor) and an anonymous referee for many helpful comments. We are also extremely grateful to Jeffrey Kubik for many helpful comments and to Jay Ritter for providing the IPO underpricing data. We also thank Bernard Salanie, Pierre-André Chiappori, Raj Iyer, Antoinette Schoar, Marcin Kacperczyk, Pengjie Gao, Bruno Biais, Doug Diamond, Eugene Fama, Diego Garcia, Vish Vishwanathan, Sheridan Titman, Laura Starks and seminar participants at Chicago Booth Business School, Imperial University, Gerzensee Corporate Finance Conference, Nanyang Technological University, AFA 2017, Conference on Finance and Accounting, University of Wisconsin, University of Texas at Austin and Hong Kong University of Science and Technology for helpful suggestions. This paper subsumes our earlier work circulated as "Assignment of Stock Market Coverage". The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.