Scholarly Articles What Do Underwriters Do Ipo

Scholarly articles what do underwriters do ipo

Abstract

Purpose – The purpose of this paper is to empirically examine the relationship between the level of underwriter spread and ownership structure by using data from Japanese IPO firms that are issued during the years 1997‐2002.

What is UNDERWRITING? What does UNDERWRITING mean? UNDERWRITING meaning, definition & explanation

Design/methodology/approach – The paper uses regression analysis to determine the effect of the ownership structure (board, bank, affiliated venture capital firms) on underwriter spread and on the post‐issue operating performance of IPO firms. Findings – This paper finds several results that are in contrast with previous studies.

The ownership by board members is positively associated with the level of gross spread but is not associated with post‐issue operating performance.

Scholarly articles what do underwriters do ipo

The presence of a commercial bank in the ownership structure of IPO firms decreases the gross spread and increases the post‐issue operating performance of IPO firms. Issuers pay a lower underwriting fee as the ownership share of the lead underwriter‐affiliated VC increases, unlike that of other VCs.

Scholarly articles what do underwriters do ipo

Originality/value – The results of this paper, supporting certification and monitoring hypotheses, contribute to academic research. Most previous studies do not support certification effects.

Scholarly articles what do underwriters do ipo

Journal

International Journal of Managerial Finance – Emerald Publishing

Published: Apr 4, 2008

Keywords: Underwriting; Payment; Private ownership; Performance monitoring; Japan