haku: @indexterm underwriting / yhteensä: 58
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| Tekijä: | Kaserer, C. Kraft, M. |
| Otsikko: | How Issue Size, Risk, and Complexity are Influencing External Financing Costs: German IPOs Analyzed from an Economies of Scale Perspective |
| Lehti: | Journal of Business Finance and Accounting
2003 : APR/MAY, VOL. 30:3-4, p. 479-512 |
| Asiasana: | COSTS CAPITAL INITIAL PUBLIC OFFERINGS UNDERWRITING ECONOMIES OF SCALE GERMANY |
| Kieli: | eng |
| Tiivistelmä: | This paper is focused on the cost of raising capital in Germany. A cross-sectional analysis of flotation cost data for 117 IPOs over the years 1993-1998 is presented. The authors find average flotation costs to be 7% of gross proceeds, while underwriting fees average 5%. The results extend the literature in two important directions. First, contrary to the conventional economies of scale view the authors find marginal spreads to be rather constant in gross proceeds and to be higher for more risky and more complex offerings. Fixed costs amount to 5-9% of underwriting fees. Second, the authors find issue size, an issuer risk factor, and an offering method complexity factor to have an economicaly meaningful impact on underwriting fees. |
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