@techreport{NBERw9070,
 title = "Institutional Allocation In Initial Public Offerings: Empirical Evidence",
 author = "Reena Aggarwal and Nagpurnanand R. Prabhala and Manju Puri",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "9070",
 year = "2002",
 month = "July",
 URL = "http://www.nber.org/papers/w9070",
 abstract = {We analyze institutional allocation in initial public offerings (IPOs) using a new dataset of US offerings between 1997 and 1998. We document a positive relationship between institutional allocation and day one IPO returns. This is partly explained by the practice of giving institutions more shares in IPOs with strong pre-market demand, consistent with book-building theories. However, institutional allocation also contains private information about first-day IPO returns not reflected in pre-market demand and other public information. Our evidence supports book-building theories of IPO underpricing, but suggests that institutional allocation in underpriced issues is in excess of that explained by book-building alone.},
}