Underwriter Spread, Underwriter Reputation, and IPO Underpricing: A Simultaneous Equation Analysis
研究承销商声誉、承销商价差与IPO抑价之间的关系，发现承销商价差传递IPO质量信息，且三者存在联立内生关系，市场存在一定分割。
This paper studies the relationships between underwriter reputation, underwriter spread, and IPO underpricing. We consider the information content of underwriter spread and find that it conveys information pertinent to IPO quality. Because underwriter spread is endogenous, underpricing and underwriter spread are jointly determined in a simultaneous equation system. Also, we examine the IPO market for evidence of segmentation, and our results suggest some market segmentation. Underwriter spread impacts initial underpricing for a group of medium‐reputation underwriters, while underpricing affects underwriter spread for groups of low‐ and high‐reputation underwriters. Consequently, high‐risk IPOs may not be priced the same way as low‐risk IPOs. We attribute this finding to regulation, competition, and/or market segmentation.