The Journal of Finance publishes leading research across all the major fields of finance. It is one of the most widely cited journals in academic finance, and in all of economics. Each of the six issues per year reaches over 8,000 academics, finance professionals, libraries, and government and financial institutions around the world. The journal is the official publication of The American Finance Association, the premier academic organization devoted to the study and promotion of knowledge about financial economics.
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Real and Nominal Efficient Sets
Published: 03/01/1979 | DOI: 10.1111/j.1540-6261.1979.tb02073.x
STEVEN MANASTER
DISCUSSION
Published: 05/01/1980 | DOI: 10.1111/j.1540-6261.1980.tb02158.x
STEVEN MANASTER
Initial Public Offerings and Underwriter Reputation
Published: 09/01/1990 | DOI: 10.1111/j.1540-6261.1990.tb02426.x
RICHARD CARTER, STEVEN MANASTER
This paper examined the returns earned by subscribing to initial public offerings of equity (IPOs). Rock (1986) suggests that IPO returns are required by uninformed investors as compensation for the risk of trading against superior information. We show that IPOs with more informed investor capital require higher returns. The marketing underwriter's reputation reveals the expected level of “informed” activity. Prestigious underwriters are associated with lower risk offerings. With less risk there is less incentive to acquire information and fewer informed investors. Consequently, prestigious underwriters are associated with IPOs that have lower returns.
Option Prices as Predictors of Equilibrium Stock Prices
Published: 09/01/1982 | DOI: 10.1111/j.1540-6261.1982.tb03597.x
STEVEN MANASTER, RICHARD J. RENDLEMAN
The Black‐Scholes option pricing model, modified for dividend payments, is used to calculate jointly implied stock prices and implied standard deviations. A comparison of the implied stock prices with observed stock prices reveals that the implied prices contain information regarding equilibrium stock prices that is not fully reflected in observed stock prices. The implications of this finding are discussed.