The Quiet Period Goes out with a Bang

• DOI: 10.1111/1540-6261.00517
• Publication Date: 2003-03-12T07:36:12Z
• Authors: Daniel J. Bradley; Bradford D. Jordan; Jay R. Ritter
• Keywords: QUIET; Underwriting; Expiration

We examine the expiration of IPO quiet period, which occurs after 25th calendar day following offering. For IPOs during 1996 to 2000, we find that analyst coverage is initiated immediately for 76 percent these firms, almost always with a favorable rating. Initiated firms experience five‐day abnormal return 4.1 versus 0.1 no coverage. The returns are concentrated in days just before period expires. Abnormal much larger when by multiple analysts. It does not matter whether recommendation comes from lead underwriter or not.