Selection Bias and the Underwriter Certification of the Largest Shareholders in Seasoned Equity Offerings

• Main Authors: Lee, Chin Chong, Poon, Wai Ching, Sinnakkannu, Jothee
• Format: Article
• Language: English
• Published: 2017
• Subjects: HB Economic Theory; HG Finance
• Online Access: http://eprints.intimal.edu.my/1198/1/2017Lee_PoonJothee-International_Review_of_Finance.SelectionbiasandtheunderwritercertificationofthelargestshareholdersinSeasonedequityofferings.pdf; http://eprints.intimal.edu.my/1198/
• Institution: INTI International University

The largest shareholders of issuing firms in Hong Kong are eligible to underwrite rights issues and open offers. We hypothesize that the largest shareholders as underwriters who possess more information are better than investment banks in certifying firm value. Our analyses show that the largest...