Reexamining the Reputation of Underwriters of US Seasoned Equity Offerings
| Autor: | Hai-Li Lin, 林海麗 |
|---|---|
| Rok vydání: | 2013 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 101 This study examines the factors that help explain the seasoned equity offering (SEO) firm appointments of underwriters. We examine firms conducting SEOs between 2005 and 2012 in the US market, and classify our observations into urban, city and rural firms. Factors including location, distance between firms and underwriters, issuing scale, change in ROE, are discussed for their influence on the mutual choice of issuer and underwriter, and the significance of the reputation mechanism. Our Ordered Logit analysis results are as follow: 1.Firms with large issuing scale or market value choose prestigious underwriters. 2.Underwriter reputation is positively related to the distance between firms and underwriters. Moreover, this phenomenon is more significant for rural firm. 3.The underwriter appointments by firms within the localized industries are more sensitive to distance, the SEO firms appear to choose underwriters who are more familiar with the local market and located near them. 4.The firms with return on equity (ROE) that increases largely in the future appear to employ the underwriters with high reputation, which supports the signaling theory. 5.During the periods when the market demand for underwriting services is large, underwriters prefer choosing firms that had large issuance scale. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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