Do underwriters short-change corporations issuing bonds?

We confirm prior evidence that bonds on average are offered at prices below their immediate post-offer secondary market prices. However, in cases where banks lead-manage their own bond offerings the underpricing is significantly less as compared to other non-self-marketed offerings. These findings a...

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Main Authors:	GOH, Choo Yong, Jeremy, YANG, Lisa
Format:	text
Language:	English
Published:	Institutional Knowledge at Singapore Management University 2022
Subjects:	Corporate Bond Bond Offerings Underpricing Agency Problem Finance Finance and Financial Management
Online Access:	https://ink.library.smu.edu.sg/lkcsb_research/7023 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8022/viewcontent/SSRN_id4052561.pdf
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Institution:	Singapore Management University
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spelling	sg-smu-ink.lkcsb_research-80222022-06-15T06:30:29Z Do underwriters short-change corporations issuing bonds? GOH, Choo Yong, Jeremy YANG, Lisa We confirm prior evidence that bonds on average are offered at prices below their immediate post-offer secondary market prices. However, in cases where banks lead-manage their own bond offerings the underpricing is significantly less as compared to other non-self-marketed offerings. These findings are robust across various matched samples and selection models. Our results suggest that the bond offering process is characterized by substantive agency conflicts between shareholders of corporations (issuers) and underwriters. 2022-04-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7023 info:doi/10.2139/ssrn.4052561 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8022/viewcontent/SSRN_id4052561.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Corporate Bond Bond Offerings Underpricing Agency Problem Finance Finance and Financial Management
institution	Singapore Management University
building	SMU Libraries
continent	Asia
country	Singapore Singapore
content_provider	SMU Libraries
collection	InK@SMU
language	English
topic	Corporate Bond Bond Offerings Underpricing Agency Problem Finance Finance and Financial Management
spellingShingle	Corporate Bond Bond Offerings Underpricing Agency Problem Finance Finance and Financial Management GOH, Choo Yong, Jeremy YANG, Lisa Do underwriters short-change corporations issuing bonds?
description	We confirm prior evidence that bonds on average are offered at prices below their immediate post-offer secondary market prices. However, in cases where banks lead-manage their own bond offerings the underpricing is significantly less as compared to other non-self-marketed offerings. These findings are robust across various matched samples and selection models. Our results suggest that the bond offering process is characterized by substantive agency conflicts between shareholders of corporations (issuers) and underwriters.
format	text
author	GOH, Choo Yong, Jeremy YANG, Lisa
author_facet	GOH, Choo Yong, Jeremy YANG, Lisa
author_sort	GOH, Choo Yong, Jeremy
title	Do underwriters short-change corporations issuing bonds?
title_short	Do underwriters short-change corporations issuing bonds?
title_full	Do underwriters short-change corporations issuing bonds?
title_fullStr	Do underwriters short-change corporations issuing bonds?
title_full_unstemmed	Do underwriters short-change corporations issuing bonds?
title_sort	do underwriters short-change corporations issuing bonds?
publisher	Institutional Knowledge at Singapore Management University
publishDate	2022
url	https://ink.library.smu.edu.sg/lkcsb_research/7023 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8022/viewcontent/SSRN_id4052561.pdf
_version_	1770576245513256960

Do underwriters short-change corporations issuing bonds?

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