Determinants of Underwriting Fees by New Entrant Banks: Evidence from the Japanese IPO Underwriting Market

2017 ◽  
Vol 47 (2) ◽  
pp. 285-307 ◽  
Author(s):  
Keiichiro Koda ◽  
Kazuo Yamada
Keyword(s):  
Underwriting Fees

The direct costs of raising external equity capital for US REIT IPOs

2012 ◽  
Vol 30 (6) ◽  
pp. 538-562
Author(s):  
Ranajit Kumar Bairagi ◽  
William Dimovski
Keyword(s):  
Initial Public Offerings ◽  
Economies Of Scale ◽  
Weighted Average ◽  
Direct Costs ◽  
Equity Capital ◽  
Return Volatility ◽  
Critical Determinant ◽  
Content Type ◽  
Underwriting Fees ◽  
External Equity

PurposeThe purpose of this paper is to investigate the total direct costs of raising external equity capital for US real estate investment trust (REIT) initial public offerings (IPOs).Design/methodology/approachThe study provides recent evidence on total direct costs for a comprehensive dataset of 125 US REIT IPOs from 1996 until June 2010. A multivariate OLS regression is performed to determine significant factors influencing the level of total direct costs and also underwriting fees and non‐underwriting direct expenses.FindingsThe study finds economies of scale in total direct costs, underwriting fees and non‐underwriting expenses. The equally (value) weighted average total direct costs are 8.33 percent (7.52 percent), consisting of 6.49 percent (6.30 percent) underwriting fees and 1.87 percent (1.22 percent) non‐underwriting direct expenses. The study finds a declining trend of total direct costs for post 2000 IPOs which is attributed to the declining trend in both underwriting fees and non‐underwriting direct expenses. Offer size is a critical determinant for both total direct costs and their individual components and inversely affects these costs. The total direct costs are found significantly higher for equity REITs than for mortgage REITs and are also significantly higher for offers listed in New York Stock Exchange (NYSE). Underwriting fees appear to be negatively influenced by the offer price, the number of representative underwriters involved in the issue, industry return volatility and the number of potential specific risk factors but positively influenced by prior quarter industry dividend yield and ownership limit identified in the prospectus. After controlling for time trend, the paper finds REIT IPOs incur higher non‐underwriting direct expenses in response to higher industry return volatility prior to the offer.Originality/valueThis paper adds to the international REIT IPO literature by exploring a number of new influencing factors behind total direct costs, underwriting fees and non‐underwriting direct expenses. The study includes data during the recent GFC period.

An Investigation of Underwriting Fees for Asset-Backed Securities

2012 ◽  
Vol 57 (2) ◽  
pp. 216-237
Author(s):  
David Puskar ◽  
Aron A. Gottesman
Keyword(s):  
Underwriting Fees ◽  
Asset Backed Securities

Financial Innovation and Financial Intermediation: Evidence from Credit Default Swaps

2020 ◽  
Author(s):  
Alexander W. Butler ◽  
Xiang Gao ◽  
Cihan Uzmanoglu
Keyword(s):  
Risk Sharing ◽  
Financial Intermediation ◽  
Financial Innovation ◽  
Credit Default Swaps ◽  
Regulatory Requirements ◽  
Credit Default ◽  
Underwriting Fees

We study the influence of credit default swaps (CDS) trading on the costs of bond intermediation. After CDS initiation, CDS firms pay 12% to 28% (8 to 20 basis points) lower underwriting fees than similar non-CDS firms do. Underwriting fees decline more for riskier issuers and illiquid bonds for which the ability to hedge with CDS is more valuable. In bond offerings, participation by investors facing risk-based regulatory requirements increases after CDS initiation. Our evidence suggests that CDS-driven innovations in risk sharing contribute to the transactional efficiency of the market by reducing the financial intermediation costs of placing bonds. This paper was accepted by Karl Diether, finance.

Underwriting Fees and Power Derivatives

1998 ◽  
Author(s):  
Emilio Barone ◽  
Antonio Castagna
Keyword(s):  
Power Derivatives ◽  
Underwriting Fees

Underwriting Fees and Shareholder Rights

2013 ◽  
Vol 40 (9-10) ◽  
pp. 1276-1303 ◽  
Author(s):  
Ji-Chai Lin ◽  
Bahar Ulupinar
Keyword(s):  
Shareholder Rights ◽  
Underwriting Fees
Sign in / Sign up

Export Citation Format

Share Document