haku: @author James, Ch. / yhteensä: 1
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| Tekijä: | James, Ch. Wier, P. |
| Otsikko: | Borrowing relationships, intermediation, and the cost of issuing public securities |
| Lehti: | Journal of Financial Economics
1990 : NOV-DEC, VOL.28:1-2, p.149-171 |
| Asiasana: | BORROWING COSTS PUBLIC FINANCE SECURITIES STOCK MARKETS |
| Kieli: | eng |
| Tiivistelmä: | It is investigated how an established borrowing relationship affects the costs associated with initial public offerings (IPO) of equity. The model illustrates how the existence of a borrowing relationship reduces the ex ante uncertainty about the value of the issuing firm's equity in the secondary market. If underpricing is related to uncertainty, a borrowing relationship can reduce underpricing. Empirically it was found that, other things equal, IPOs of firms with previously established borrowing relationships are underpriced substantially less than other IPOs. |
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