Bought deals: The value of underwriter certification in seasoned equity offerings

被引：24

作者：

Pandes, J. Ari ^{[1
]}

机构：

[1] Univ Calgary, Haskayne Sch Business, Calgary, AB T2N 1N4, Canada

来源：

JOURNAL OF BANKING & FINANCE | 2010年 / 34卷 / 07期

关键词：

SEOs; Bought deal; Information asymmetry; Underwriter certification; INVESTMENT BANK REPUTATION; SHELF REGISTRATION; FINANCIAL INTERMEDIATION; INFORMATION-CONTENT; ISSUES; DILIGENCE; MARKET; PRICE;

D O I：

10.1016/j.jbankfin.2010.03.005

中图分类号：

F8 [财政、金融];

学科分类号：

020219 [财政学（含：税收学）];

摘要：

The bought deal is the predominant method of underwriting SEOs in Canada. Offer prices are set and underwriters commit to purchase offerings several days earlier for bought deals than for firm commitment issues, implying stronger underwriter certification for bought deal issues. Consistent with the certification hypothesis, this study finds a significantly smaller negative stock price reaction around the announcement of bought deals compared to firm commitment issues. Bought deals are further shown to have smaller offer price discounts and smaller underwriting fees, implying superior pricing and thus, higher quality offerings. These findings suggest that investment banks' underwriting method of choice is informative of issue quality. (C) 2010 Elsevier B.V. All rights reserved.

引用

页码：1576 / 1589

页数：14

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