search query: @author Helou, A. / total: 4
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| Author: | Helou, A. Park, G. |
| Title: | Is there a signaling effect of underwriter reputation? |
| Journal: | Journal of Financial Research
2001 : SPRING, VOL. 24:1, p. 27-43 |
| Index terms: | UNDERWRITING REPUTATION SIGNALING |
| Language: | eng |
| Abstract: | In this article the authors examine the effect of underwriter reputation on the abnormal return due to an announcement to issue seasoned new equity. After controlling for other factors that relate asymmetric information to abnormal returns, underwriter reputation still significantly reduces the magnitude of the negative announcement effect. The authors also develop a procedure to extract a signaling component from the measure of underwater reputation. The authors show that the signaling component of underwriter reputation positively and significantly affects abnormal returns. This result supports the notion that issuing firms use underwriter reputation as an effective instrument to signal that their stocks are not overvalued. |
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