Determinants of Contract Choice: The Use of Warrants to Compensate Underwriters of Seasoned Equity Issues
研究增发股票时发行人是否用认股权证补偿承销商的决定因素，发现认股权证能替代声誉资本、帮助承销商认证发行价，并受监管和成本最小化目标影响。
ABSTRACT The issuer's decision to include warrants as compensation to underwriters is studied for a sample of 1,991 negotiated firm commitment issues of seasoned equity. Using a two‐stage logit model to correct for self‐selection bias, we find direct evidence that warrant compensation functions as a bond, substituting for reputational capital and enabling the underwriter to certify the issue price. To a lesser degree, the decision also is affected by regulations on underwriter compensation and on the use of underwriter warrants. Issuers' decisions are consistent with an objective of minimizing total underwriting cost, including cash compensation, warrants, and underpricing.