The Marketing Role of Managing Underwriters in Seasoned Equity Offerings

摘要：

Additional managing underwriters reduce the offer price discount relative to the pre-issue market price for SEOs of which the relative offer size is large and the stock return volatility is high. We argue that the negative effects of additional managing underwriters on the offer price discount,especially for relatively large and volatile SEOs,result from their marketing efforts that reduce both the price pressure associated with a large supply of new shares and the downside risk for investors to purchase shares of volatile SEOs. We also find weak evidence that the marginal impact on the gross spread of including additional managing underwriters in the syndicate decreases as the relative offer size or stock volatility increases,consistent with the marketing role of managing underwriters.

关键词： SEOs Managing Underwriters Marketing Underpricing Gross Spreads

作者: Rongbing Huang Donghang Zhang

作者单位: Huang is from the Coles College of Business,Kennesaw State University,Kennesaw,GA 30144,and Zhang is from the Smeal College of Business,Penn State University,University Park,PA 16802

会议类型: 国际会议

会议名称: 2007年中国国际金融年会

会议地点: 成都

会议语种:英文

在线出版日期: 2007-07-09（万方平台首次上网日期，不代表论文的发表时间）