The Certification Role of Large Customers in the New Issues Market
This paper examines the certification role of large customers and finds that IPO firms that have product market relationships with large customers experience higher valuation and better longterm performance compared to IPOs without such relationships. This higher valuation is more pronounced when pr...
Gespeichert in:
| Veröffentlicht in: | Financial management 2010-12, Vol.39 (4), p.1425-1474 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 1474 |
|---|---|
| container_issue | 4 |
| container_start_page | 1425 |
| container_title | Financial management |
| container_volume | 39 |
| creator | Johnson, William C. Kang, Jun-Koo Yi, Sangho |
| description | This paper examines the certification role of large customers and finds that IPO firms that have product market relationships with large customers experience higher valuation and better longterm performance compared to IPOs without such relationships. This higher valuation is more pronounced when product market relationships are able to alleviate IPO uncertainties, when the businesses of large customers and their IPO suppliers are closely related in downstream markets, and when large customers have stronger certifying abilities. Finally, we find that large customers realize significant positive abnormal returns around their suppliers' preliminary prospectus filing dates, suggesting that some of the benefits from product market relationships accrue to large customers. |
| doi_str_mv | 10.1111/j.1755-053X.2010.01118.x |
| format | Article |
| fullrecord | <record><control><sourceid>gale_proqu</sourceid><recordid>TN_cdi_proquest_miscellaneous_850557722</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><galeid>A246013373</galeid><jstor_id>40963516</jstor_id><sourcerecordid>A246013373</sourcerecordid><originalsourceid>FETCH-LOGICAL-c7328-2bff4ab496b7aa0c00d215fb82c077313212520d5052070cbd4849e6897d94f43</originalsourceid><addsrcrecordid>eNqNkV-L1DAUxYsoOK5-BKHggy-2mz9N074IY3V3B2ZGkBXFl5C2N92MnXbNbdnZb2-6ldGFeTCBJNz7OychJwhCSmLqx_kuplKIiAj-PWbEV4mvZvHhSbA4Np4GC0KSNOJZzp4HLxB3hFBGWLoIPlzfQFiAG6yxlR5s34Vf-hbC3oRr7RrfG3Ho9-AwtF04eHgLd-EKcQQMN9r9hOFl8MzoFuHVn_0s-Hrx6bq4itafL1fFch1VkrMsYqUxiS6TPC2l1qQipGZUmDJjFZGSU84oE4zUgvhVkqqskyzJIc1yWeeJSfhZ8Hb2vXX9L3_9oPYWK2hb3UE_osq8UkjJmCffzGSjW1C2M_3gdDXRasmSlFDOJfdUdIJqoAOn274DY335ER-f4P2sYW-rk4J3_wjKEW0H6Be0zc2AjR4RH-PZjFeuR3Rg1K2ze-3uFSVqylrt1BSpmiJVU9bqIWt18NL3s_TOP-H-v3XqYrVZTkdv8Ho22Pm03dEgIXnKBU3__pXFAQ7Hvs9fpZJLob5tLxX_sdmK4uOVKvhvN5LEJQ</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>850557722</pqid></control><display><type>article</type><title>The Certification Role of Large Customers in the New Issues Market</title><source>Business Source Complete</source><source>Access via Wiley Online Library</source><source>JSTOR Archive Collection A-Z Listing</source><creator>Johnson, William C. ; Kang, Jun-Koo ; Yi, Sangho</creator><creatorcontrib>Johnson, William C. ; Kang, Jun-Koo ; Yi, Sangho</creatorcontrib><description>This paper examines the certification role of large customers and finds that IPO firms that have product market relationships with large customers experience higher valuation and better longterm performance compared to IPOs without such relationships. This higher valuation is more pronounced when product market relationships are able to alleviate IPO uncertainties, when the businesses of large customers and their IPO suppliers are closely related in downstream markets, and when large customers have stronger certifying abilities. Finally, we find that large customers realize significant positive abnormal returns around their suppliers' preliminary prospectus filing dates, suggesting that some of the benefits from product market relationships accrue to large customers.</description><identifier>ISSN: 0046-3892</identifier><identifier>EISSN: 1755-053X</identifier><identifier>DOI: 10.1111/j.1755-053X.2010.01118.x</identifier><language>eng</language><publisher>Melbourne, Australia: Blackwell Publishing Asia</publisher><subject>Business structures ; Customers ; Financial services industries ; Financing methods ; Going public (Securities) ; Herfindahl Hirschman index ; Industrial market ; Initial public offering ; Initial public offerings ; Investment returns ; Market analysis ; Marketing strategies ; Measurement ; Product markets ; Real estate investment trusts ; Service industries ; Uncertainty ; Valuation</subject><ispartof>Financial management, 2010-12, Vol.39 (4), p.1425-1474</ispartof><rights>2010 Financial Management Association International</rights><rights>COPYRIGHT 2010 Financial Management Association</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c7328-2bff4ab496b7aa0c00d215fb82c077313212520d5052070cbd4849e6897d94f43</citedby><cites>FETCH-LOGICAL-c7328-2bff4ab496b7aa0c00d215fb82c077313212520d5052070cbd4849e6897d94f43</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/40963516$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/40963516$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>315,781,785,804,1418,27929,27930,45579,45580,58022,58255</link.rule.ids></links><search><creatorcontrib>Johnson, William C.</creatorcontrib><creatorcontrib>Kang, Jun-Koo</creatorcontrib><creatorcontrib>Yi, Sangho</creatorcontrib><title>The Certification Role of Large Customers in the New Issues Market</title><title>Financial management</title><description>This paper examines the certification role of large customers and finds that IPO firms that have product market relationships with large customers experience higher valuation and better longterm performance compared to IPOs without such relationships. This higher valuation is more pronounced when product market relationships are able to alleviate IPO uncertainties, when the businesses of large customers and their IPO suppliers are closely related in downstream markets, and when large customers have stronger certifying abilities. Finally, we find that large customers realize significant positive abnormal returns around their suppliers' preliminary prospectus filing dates, suggesting that some of the benefits from product market relationships accrue to large customers.</description><subject>Business structures</subject><subject>Customers</subject><subject>Financial services industries</subject><subject>Financing methods</subject><subject>Going public (Securities)</subject><subject>Herfindahl Hirschman index</subject><subject>Industrial market</subject><subject>Initial public offering</subject><subject>Initial public offerings</subject><subject>Investment returns</subject><subject>Market analysis</subject><subject>Marketing strategies</subject><subject>Measurement</subject><subject>Product markets</subject><subject>Real estate investment trusts</subject><subject>Service industries</subject><subject>Uncertainty</subject><subject>Valuation</subject><issn>0046-3892</issn><issn>1755-053X</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2010</creationdate><recordtype>article</recordtype><sourceid>N95</sourceid><recordid>eNqNkV-L1DAUxYsoOK5-BKHggy-2mz9N074IY3V3B2ZGkBXFl5C2N92MnXbNbdnZb2-6ldGFeTCBJNz7OychJwhCSmLqx_kuplKIiAj-PWbEV4mvZvHhSbA4Np4GC0KSNOJZzp4HLxB3hFBGWLoIPlzfQFiAG6yxlR5s34Vf-hbC3oRr7RrfG3Ho9-AwtF04eHgLd-EKcQQMN9r9hOFl8MzoFuHVn_0s-Hrx6bq4itafL1fFch1VkrMsYqUxiS6TPC2l1qQipGZUmDJjFZGSU84oE4zUgvhVkqqskyzJIc1yWeeJSfhZ8Hb2vXX9L3_9oPYWK2hb3UE_osq8UkjJmCffzGSjW1C2M_3gdDXRasmSlFDOJfdUdIJqoAOn274DY335ER-f4P2sYW-rk4J3_wjKEW0H6Be0zc2AjR4RH-PZjFeuR3Rg1K2ze-3uFSVqylrt1BSpmiJVU9bqIWt18NL3s_TOP-H-v3XqYrVZTkdv8Ho22Pm03dEgIXnKBU3__pXFAQ7Hvs9fpZJLob5tLxX_sdmK4uOVKvhvN5LEJQ</recordid><startdate>20101201</startdate><enddate>20101201</enddate><creator>Johnson, William C.</creator><creator>Kang, Jun-Koo</creator><creator>Yi, Sangho</creator><general>Blackwell Publishing Asia</general><general>Wiley Subscription Services</general><general>Financial Management Association</general><scope>BSCLL</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>N95</scope><scope>XI7</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20101201</creationdate><title>The Certification Role of Large Customers in the New Issues Market</title><author>Johnson, William C. ; Kang, Jun-Koo ; Yi, Sangho</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c7328-2bff4ab496b7aa0c00d215fb82c077313212520d5052070cbd4849e6897d94f43</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2010</creationdate><topic>Business structures</topic><topic>Customers</topic><topic>Financial services industries</topic><topic>Financing methods</topic><topic>Going public (Securities)</topic><topic>Herfindahl Hirschman index</topic><topic>Industrial market</topic><topic>Initial public offering</topic><topic>Initial public offerings</topic><topic>Investment returns</topic><topic>Market analysis</topic><topic>Marketing strategies</topic><topic>Measurement</topic><topic>Product markets</topic><topic>Real estate investment trusts</topic><topic>Service industries</topic><topic>Uncertainty</topic><topic>Valuation</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Johnson, William C.</creatorcontrib><creatorcontrib>Kang, Jun-Koo</creatorcontrib><creatorcontrib>Yi, Sangho</creatorcontrib><collection>Istex</collection><collection>CrossRef</collection><collection>Gale Business: Insights</collection><collection>Business Insights: Essentials</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Financial management</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Johnson, William C.</au><au>Kang, Jun-Koo</au><au>Yi, Sangho</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>The Certification Role of Large Customers in the New Issues Market</atitle><jtitle>Financial management</jtitle><date>2010-12-01</date><risdate>2010</risdate><volume>39</volume><issue>4</issue><spage>1425</spage><epage>1474</epage><pages>1425-1474</pages><issn>0046-3892</issn><eissn>1755-053X</eissn><abstract>This paper examines the certification role of large customers and finds that IPO firms that have product market relationships with large customers experience higher valuation and better longterm performance compared to IPOs without such relationships. This higher valuation is more pronounced when product market relationships are able to alleviate IPO uncertainties, when the businesses of large customers and their IPO suppliers are closely related in downstream markets, and when large customers have stronger certifying abilities. Finally, we find that large customers realize significant positive abnormal returns around their suppliers' preliminary prospectus filing dates, suggesting that some of the benefits from product market relationships accrue to large customers.</abstract><cop>Melbourne, Australia</cop><pub>Blackwell Publishing Asia</pub><doi>10.1111/j.1755-053X.2010.01118.x</doi><tpages>50</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0046-3892 |
| ispartof | Financial management, 2010-12, Vol.39 (4), p.1425-1474 |
| issn | 0046-3892 1755-053X |
| language | eng |
| recordid | cdi_proquest_miscellaneous_850557722 |
| source | Business Source Complete; Access via Wiley Online Library; JSTOR Archive Collection A-Z Listing |
| subjects | Business structures Customers Financial services industries Financing methods Going public (Securities) Herfindahl Hirschman index Industrial market Initial public offering Initial public offerings Investment returns Market analysis Marketing strategies Measurement Product markets Real estate investment trusts Service industries Uncertainty Valuation |
| title | The Certification Role of Large Customers in the New Issues Market |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2024-12-16T01%3A38%3A35IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-gale_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=The%20Certification%20Role%20of%20Large%20Customers%20in%20the%20New%20Issues%20Market&rft.jtitle=Financial%20management&rft.au=Johnson,%20William%20C.&rft.date=2010-12-01&rft.volume=39&rft.issue=4&rft.spage=1425&rft.epage=1474&rft.pages=1425-1474&rft.issn=0046-3892&rft.eissn=1755-053X&rft_id=info:doi/10.1111/j.1755-053X.2010.01118.x&rft_dat=%3Cgale_proqu%3EA246013373%3C/gale_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=850557722&rft_id=info:pmid/&rft_galeid=A246013373&rft_jstor_id=40963516&rfr_iscdi=true |