Firms Switch Underwriters for Higher Reputation and Analyst Coverage Boost.
Firms often change their main financial advisor after their initial public offering. Surprisingly, they don't usually switch because they were unhappy with the advisor's performance during the IPO. Instead, they switch to more prestigious advisors and to get more attention from influential analysts. Companies that switch advisors tend to have IPOs that were not as underpriced as those that stick with the same advisor. However, companies that stick with their original advisor tend to raise more money than expected.