%0 Journal Article %A Donald Flagg %A Speros Margetis %T What Characteristics of Underwriters Influence Underpricing? %D 2008 %R 10.3905/jpe.2008.702790 %J The Journal of Private Equity %P 49-59 %V 11 %N 2 %X In this article, we investigate how underpricing is affected by lead underwriters. Most research articles have focused on one primary control for underwriters, the Carter and Manaster [1990] ranking, when controlling for the influence underwriters have on underpricing. We propose some new controls to better explain how underwriters influence underpricing, supplementing underwriter ranking with a deal flow measure and previous underwriter underpricing. These new measures are not only statistically significant but also increase the explanatory ability of the model in explaining underpricing. Our results support Lowry and Schwert's [2004] notion that IPO pricing does not fully incorporating all public information available.TOPICS: Private equity, statistical methods, security analysis and valuation %U https://jpe.pm-research.com/content/iijpriveq/11/2/49.full.pdf