Publication Type
Working Paper
Version
publishedVersion
Publication Date
4-2022
Abstract
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.
Keywords
Corporate Bond, Bond Offerings, Underpricing, Agency Problem
Discipline
Finance | Finance and Financial Management
Research Areas
Finance
First Page
1
Last Page
50
Identifier
https://doi.org/10.2139/ssrn.4052561
Publisher
Singapore Management University Lee Kong Chian School of Business Research Paper Seriesess
City or Country
Singapore
Citation
GOH, Choo Yong, Jeremy and YANG, Lisa.
Do underwriters short-change corporations issuing bonds?. (2022). 1-50.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7023
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
External URL
https://doi.org/10.2139/ssrn.4052561