Honors College

Document Type

Honors Thesis

Publication Date

Spring 2019


During 2015, approximately 201 U.S. companies decided to go public in order to gain capital in return for stock shares. Out of these 201 companies, 127 companies left an average of $46.5 million dollar on the table as a result of underpricing. There is a plethora of literature that shows underpricing is a result of many different variables, yet few analyze how underwriters relate to IPO underpricing. Through the use of correlation matrices, means difference tests, simple regressions, and multivariate regressions, this study finds that there is no statistically significant trend between underwriters and money left on the table. However, one point of interest for future studies would be to analyze the effectiveness of Singular Lead Underwriters versus Multiple Lead Underwriters while controlling for prestigious investment banks.