Market Structure, Changing Incentives, and Underwriter Certification
Document Type
Article
Publication Date
2005
Publication Title
Journal of Financial Research
First Page
403
Last Page
419
DOI
http://dx.doi.org/10.1111/j.1475-6803.2005.00131.x
Abstract
Early studies find that higher quality underwriters are associated with lower underpricing; however, more recent evidence suggests the opposite relation. By controlling for influences associated with the changing market structure of the underwriter industry, I provide a potential explanation for this conflict, that is, that higher quality underwriters do certify initial public offerings, resulting in lower underpricing. However, effects associated with increasing market shares tend to offset certification benefits, particularly for issues underwritten by the largest investment banks.
Rights
Version of record can be found through Wiley.
Recommended Citation
Dolvin, Steven D., "Market Structure, Changing Incentives, and Underwriter Certification" (2005). Scholarship and Professional Work - Business. 129.
https://digitalcommons.butler.edu/cob_papers/129
