Do investment banks compete in IPOs?: the advent of the "7% plus contract"

By Robert S. Hansen. 2001

210 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/af670a969506bdb33537483b19d2801bad625658

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Citations in the corpus

Are IPO Allocations for Sale? Evidence from Mutual Funds (2006, unknown): “5 As Loughran and Ritter (2002) argue, in order for lead underwriters to benefit from underpricing they must earn more in incremental brokerage business via favoritism than they forego in direct fees, typically seven cents per dollar raised (Chen and Ritter (2000), Hansen (2001)).”
On the Marketing of IPOs (2006, unknown): “(2000), Hansen (2001)) in that we treat as our dependent variables the total dollar compensation and the total dollar selling compensation, rather than their scaled versions (e.”
Wanna Dance? How Firms and Underwriters Choose Each Other (2005, unknown): “4 Finally, as argued by Hansen and Torregrosa (1992), underwriters perform a monitoring role in the underwritten firms.”
Issuer surplus and the partial adjustment of IPO prices to public information (2005, unknown): “(IV) 12 3/4/2003 In practice, a bank’s fees for conducting an offering are a percentage of the offer proceeds [Hansen (2001), Ritter (2001)].”
Global Integration in Primary Equity Markets: The Role of U.S. Banks and U.S. Investors (2000, unknown): “We manually classify every offering in our sample using news sources (Nexis-Lexis, Reuters Business Briefing, Bloomberg, Dow Jones, and the London Stock Exchange’s Regulatory News Service) or information from national stock markets and IPO prospectuses contained in Disclosure’s Global Access service”
Initial Public Offerings: A synthesis of the Literature and Directions for Future Research (2018, background): “50 being consistent with information production rather than a decision to simply disclose more information. Moreover, information related to inputs into valuation models is found to be most relevant, e.g., finance and accounting terms, product market, governance, etc. Jenkinson et al (2006) suggest ”
Discounting and underpricing in seasoned equity offers (2003, methodology): “Hansen, R. S., 2001.”
Distance Still Matters: Evidence from Municipal Bond Underwriting (2002, unknown): “Consistent with other studies (e.g., Chen and Ritter, 2000; Hansen, 2001 ), percentage investment banking fees decrease as offer size increases, although the total dollar fees increase with offer size.”
Do Tests of Capital Structure Theory Mean What They Say (2007, unknown): “Recent empirical research emphasizes that in initial public offerings, a simple 7% solution is used to settle underwriter costs (Hansen (2001)).”
Strategic IPOs and product market competition (2011, unknown): “A substantial part of the IPO cost is the spread charged by the underwriter, which tends to be a relatively stable percentage of the IPO proceeds (e.g., Chen and Ritter, 2000; and Hansen, 2001).”
Stock Market Liquidity and the Cost of Issuing Equity (2005, background): “…little cross-sectional variation, which may be attributed to either strategic pricing among investment banking syndicates (Chen and Ritter (2000)) or to efficient contracting mechanisms (Hansen (2001)).5 In contrast to IPOs, there is substantial cross-sectional variation in SEO gross fees.”