Underpricing in the corporate bond market

• 成果类型: Article
• 署名作者: Cai, Nianyun Kelly; Helwege, Jean; Warga, Arthur
• 署名单位: University of Michigan System; University of Michigan; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Houston System; University of Houston
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhm048
• 发表日期: 2007
• 页码: 2021
• 关键词: IPO; INFORMATION; issues

摘要

This article examines underpricing of initial public offerings (IPOs) and seasoned offerings in the corporate bond market. We investigate whether underpricing represents a solution to an information problem or a liquidity problem. We find that underpricing occurs with both IPOs and seasoned offerings and is highest among riskier, unknown firms. Our evidence suggests that information problems drive underpricing, with support for both the bookbuilding view of underpricing and the asymmetric information theory. We do not find evidence in favor of the Rock model of underpricing or any evidence that illiquidity causes underpricing.