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Asian Review of Financial Research, Vol., No..
pp.1915~1935
pp.1915~1935
Heated Negotiation within the Syndicate and IPOs
Jin Q. Jeon Division of Business and Economics Western Oregon University Monmouth, OR 97361
Jin S. Kim School of Business Administration Kyungbook National University Daegu, 702-701, South Korea
Cheolwoo Lee School of Business Ferris State University
This paper examines the determinants of heated negotiation within the syndicate??i) between the lead underwriter and co-managers and ii) among co-managers??and how heated negotiation affects IPOs. We find that heated negotiation is positively related to underwriter compensation for the lead underwriter, the number of co-managers, and gross spread in dollars and negatively to underwriter compensation for co-managers and co-managers¡¯ average reputation, The presence of co-manager all-star analysts is important for heated negotiation between the lead underwriter and co-managers but not a factor for that among co-managers. Heated negotiation appears to increase the number of market makers in the aftermarket and such result is more pronounced when there is heated negotiation among co-managers.
Jin Q. Jeon
Jin S. Kim
Cheolwoo Lee
This paper examines the determinants of heated negotiation within the syndicate??i) between the lead underwriter and co-managers and ii) among co-managers??and how heated negotiation affects IPOs. We find that heated negotiation is positively related to underwriter compensation for the lead underwriter, the number of co-managers, and gross spread in dollars and negatively to underwriter compensation for co-managers and co-managers¡¯ average reputation, The presence of co-manager all-star analysts is important for heated negotiation between the lead underwriter and co-managers but not a factor for that among co-managers. Heated negotiation appears to increase the number of market makers in the aftermarket and such result is more pronounced when there is heated negotiation among co-managers.
Heated Negotiation,Syndicate,IPOs,Underwriters
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