The effects of underwriters on the flotation costs of SEOs and the likelihood of investor participation in equity offerings

摘要: Underwriting is a key factor in equity offerings and many scholars have sought to shed light on the role that underwriters play investment banking industry. My thesis extends existing studies by investigating how affect flotation costs of SEOs likelihood investor participation offerings. With repeal US Glass-Steagall Act 1999, barrier between commercial was broken down banks could also participate securities underwriting. Given reflect market perception share issue, it crucial understand perceptions bank co-managers convey market. However, most previous did not consider effects SEO may vary different situation. The first empirical chapter my will fill this gap. results support hypothesis underwritten varies circumstances. Commercial can increase if their behaviour motivation impression opportunism market. It widely accepted relationship-based rather than transaction-based business. Nevertheless, due technical difficulties, few investigated underwriter-investor relationship affects participation. Therefore, research reported second (Chapter 5) The suggest that: firstly, underwriter–investor networks such influence separate from function underwriters; secondly, are effective only pure IPOs but interactively; finally, relationships built lead managers effective, as those co-managers.