Information Externalities and the Role of Underwriters in Primary Equity Markets

By Lawrence M. Benveniste, Walid Y. Busaba, William J. Wilhelm. 2002

226 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/3f5bbd5cb9fb34ebc33ee67a10d30115330e5446

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Citations in the corpus

Cycles in the IPO market (2008, background): “The resulting market breakdowns create a role for investment banks in bundling IPOs and cross-subsidizing early wave offerings (Benveniste, Busaba, and Wilhelm (2002)).”
Issuer surplus and the partial adjustment of IPO prices to public information (2005, unknown): “In constructing these portfolios we exclude firms in the top quartile of market capitalization for each industry to approximately match on size as well as industry.”
Investment Banking and Securities Issuance (2003, background): “Benveniste, Busaba and Wilhelm (2002) also view information spillovers as an important reason for industry clustering in IPO volume.”
IPO Pricing in the Dot-Com Bubble (2003, unknown): “The industry index is computed as the equally-weighted return on firms in a particular Fama-French (1997) industry,10 using the universe of firms available in CRSP. Benveniste, Busaba, and Wilhelm (2002) argue that price revisions incorporate information spilling over from the bookbuilding efforts o”
Wanna Dance? How Firms and Underwriters Choose Each Other (2005, unknown): “Consistent with Kim and Ritter (1999) and Benveniste et al. (2003), firms with positive earnings may be easier to value since one can use earnings multiples.”
IPO Market Timing (2005, background): “Similarly, Benveniste, Busaba, and Wilhelm (2002) present a model where the pioneer’s IPO is assumed to reveal news about industry-wide growth opportunities.”
A Theory of Merger-Driven IPOs (2011, unknown): “Similarly, Benveniste, Busaba, and Wilhelm (2002) suggest that IPO firms generate information externalities for other firms in their industry.”
Lending Relationships and Information Rents: Do Banks Exploit Their Information Advantages? (2010, unknown): “Spreadi,l = β0 + βIntensity (Intensity)i,l + βIntensity_Sqrd ¡ Intensityi,l ¢2 (2)”
Evidence Of Information Spillovers In The Production Of Investment Banking Services (2003, unknown): “As such, our findings are consistent with the Benveniste, Busaba, and Wilhelm (2002) argument that the dynamics of volume and initial returns in primary equity markets reflect, at least in part, an institutional response to information externalities.”
IPO Pricing in “Hot” Market Conditions: Who Leaves Money on the Table? (2005, background): “The model generates another important result: Since the underwriter sets an IPO price that is between the company’s intrinsic value and the price noise 490 The Journal of Finance traders are ready to pay, IPO shares are overpriced with respect to their longrun intrinsic value.”