When the Underwriter Is the Market Maker: An Examination of Trading in the IPO Aftermarket
研究IPO后三个月内承销商与非关联做市商的后市交易，发现主承销商是主导做市商，通过稳定活动和超额配股权管理库存风险，其交易利润与抑价程度正相关。
This paper examines aftermarket trading of underwriters and unaffiliated market makers in the three‐month period after an IPO. We find that the lead underwriter is always the dominant market maker; he takes substantial inventory positions in the aftermarket trading, and co‐managers play a negligible role in aftermarket trading. The lead underwriter engages in stabilization activity for less successful IPOs, and uses the overallotment option to reduce his inventory risk. Compensation to the underwriter arises primarily from fees, but aftermarket trading does generate positive profits, which are positively related to the degree of underpricing.