SSRN-Strength of Analyst Coverage Following IPOs by Christopher James, Jason Karceski

James and Karceski report that firms who have poor IPO performance get more than just price stabilization in the after market. However, while price stabilization tends to end relatively quickly, the firms whose IPO did poorly also get longer term more favorable coverage in the period following their IPO. This supports the "booster shot" hypothesis."Firms with poor aftermarket performance are