Author: Hsuan-Chi ChenPublisher:
ISBN:
Category :
Languages : en
Pages : 152
Book Description
Two Essays on Underwriter Compensation for Initial Public Offerings
Author: Hsuan-Chi ChenEssays on Underwriter Short Covering Transactions in Initial and Seasoned Public Offerings of Equity
Author: Aijun BesioPublisher:
ISBN:
Category : Going public (Securities)
Languages : en
Pages : 250
Book Description
Two Essays on Initial Public Offerings
Author: Ansley ChuaPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
I find that the extent of managers' undercompensation as compared to peer managers is compensated post-IPO. I do find other attributes, such as being a CEO, also affect the increase in pay. However, Chairmanship and Board status did not affect compensation. Additionally, I find that free cash flows and firm ownership value is consistently and strongly related to an increase in pay. However, governance variables do not limit the executives' change in compensation. I find strong support that both previous executive sacrifice and the principal/agent issues are major factors in the determination of executives' post-IPO compensation.
Essays on Initial Public Offering Underwriting
Author: Katrina Louise EllisPublisher:
ISBN:
Category :
Languages : en
Pages : 196
Book Description
The Role of the Underwriter in the Initial Public Offering Process
Author: Georgi GeorgievPublisher: GRIN Verlag
ISBN: 3656208905
Category : Business & Economics
Languages : en
Pages : 89
Book Description
Bachelor Thesis from the year 2005 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,7, Martin Luther University, 38 entries in the bibliography, language: English, abstract: The world of finance is complex. There are many aspects, which cannot be fully explained and still confuse the researchers. One of the most discussed topics is that of Initial Public Offerings (IPO) mainly because of the intricate connections between investment bankers (underwriters), issuers and buyers. This paper will try to summarize the whole process of going public and emphasize on the role of the (lead) underwriter in it. The paper discusses mainly the American "way" of going public, but the procedure is generally the same for the European market with some differences that are explained in the text. The advantages, disadvantages and the legal requirements for going public are enlightened, in order of understanding the important role, which the underwriter plays in the whole process. The structure and the legal consequences of the due diligence process are presented. The types of agreement between the underwriter and the issuer are described, with the consequences that originate from them. The ways of determining the price and the advantages and disadvantages of any of them are presented, with respect to the importance of the underwriter's role in them and the liabilities that she has. The problem with the underpricing is discussed more detailed, since this is one of the big challenges in the IPO process. Some theories that explain this phenomenon are briefly discussed, showing the mechanism that is behind the underpricing problem. Some of the unlawful allocation practices are listed, with examples that show that even the top underwriters use prohibited actions to ensure the successful completion of the IPO process. The importance of the pre-opening period for the determination of the right market price and the active participation of the underw
Securities Underwriting
Author: How Does Underwriter Price Support Affect Ipos? Empirical Evidence
Author: Manju PuriPublisher:
ISBN:
Category :
Languages : en
Pages : 48
Book Description
While it is extensively documented that underwriters often quot;stabilizequot; or quot;supportquot; initial public offerings (IPOs), less is known about how this practice impacts the IPO process. We argue that price support creates a short put position for underwriters, and thereby gives underwriters the incentive to reduce the ex-ante price risk of IPOs. We provide extensive empirical evidence that price support is related to IPO price risk, using several measures of support and risk. Rare data from SEC filings on price support, cross-sectional evidence from IPOs offered between 1985 and 1994, and data from two different price support regimes all indicate a negative relation between price support and the initial price risk of IPOs.
Dissertation Abstracts International
Author: Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 682
Book Description
SEC Docket
Author: United States. Securities and Exchange CommissionPublisher:
ISBN:
Category : Securities
Languages : en
Pages : 392
Book Description
Underwriter Networks, Investor Attention, and Initial Public Offerings
Author: Emanuele BajoPublisher:
ISBN:
Category :
Languages : en
Pages : 65
Book Description
Using various “centrality” measures from Social Network Analysis (SNA), we analyze how the location of a lead IPO underwriter in its network of investment banks affects various IPO characteristics. We hypothesize that investment banking networks allow lead IPO underwriters to induce institutions to pay attention to the firms they take public and to perform two information-related roles during the IPO process: an information dissemination role, where the lead underwriter uses its investment banking network to disseminate noisy information about various aspects of the IPO firm to institutional investors; and an information extraction role, where the lead underwriter uses its investment banking network to extract information useful in pricing the IPO firm equity from institutional investors. Based on these two roles, we develop testable hypotheses relating lead IPO underwriter centrality to the IPO characteristics of firms they take public. We find that more central lead IPO underwriters are associated with larger absolute values of offer price revisions; greater IPO and after-market valuations; larger IPO initial returns; greater institutional investor equity holdings and analyst coverage immediately post-IPO; greater stock liquidity post-IPO; and better long-run stock returns. Using a hand-collected data set of pre-IPO media coverage as a proxy for investor attention, we show that an important channel through which more central lead IPO underwriters achieve favorable IPO characteristics is by attracting greater investor attention to the IPOs underwritten by them.