Download This PaperUnderwriter Reputation, Issuer-Underwriter Matching, and SEO Performance
70 Pages Posted: 7 Oct 2019 Last revised: 26 Aug 2022
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Underwriter Reputation, Issuer-Underwriter Matching, and SEO Performance
Date Written: October 2019
Abstract
The role of underwriters is altered in new seasoned equity offering deal types in which the offering follows quickly after its announcement. Controlling for the endogenous matching between issuing firms and underwriters, we find increased underwriter reputation mitigates the immediate price impact of announcing an accelerated bookbuilt offering, exacerbates the price impact of announcing a bought offering, and has no immediate price impact for fully marketed deals. In contrast, underwriter reputation positively affects price outcomes for fully marketed deals around the offer date. Reputation effects are not apparent in the absence of controlling for the endogenous matching.
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Charles W. Calomiris (Contact Author)
Columbia University - Columbia Business School ( email )
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Yehuda (Yud) Izhakian
City University of New York, Baruch College - Zicklin School of Business - Department of Economics and Finance ( email )
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New York, NY 10010
United States
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