Managing Underwriters and the Marketing of Seasoned Equity Offerings
Document Type
Article
Publication Date
7-2009
Abstract
Using a sample of 2,281 SEOs from 1995-2004, we show that the marketing of securities is important to issuers. The number of managing underwriters for an SEO is negatively related to the offer price discount, especially when the relative offer size is large and the stock return volatility is high. Larger investor networks of co-managing underwriters also lower offer price discounts. We argue that the evidence is supportive of the marketing hypothesis - the underwriters' marketing efforts can lower the offer price discount by shifting up and flattening the demand curve of an SEO.
Journal Title
Journal of Financial and Quantitative Analysis
Journal ISSN
0022-1090
Volume
46
Issue
1
First Page
141
Last Page
170
Digital Object Identifier (DOI)
10.1017/S0022109010000712
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