Why do firms switch underwriters

• 成果类型: Article
• 署名作者: Krigman, L; Shaw, WH; Womack, KL
• 署名单位: Dartmouth College; University of Arizona; Southern Methodist University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(01)00045-9
• 发表日期: 2001
• 页码: 245-284
• 关键词: underwriter services; Underpricing; sell-side research; reputation; all-star analysts

摘要

In the mid-1990s, 30% of firms completing an SEO within three years of their IPO switched lead underwriter, This article provides evidence on why they switched. Contrary to predictions of prior research, there is little evidence that firms switch due to dissatisfaction with underwriter performance at the time of the IPO. A surprising result is that switchers' IPOs were significantly less underpriced than non-switchers' IPOs. However, switchers raised fewer proceeds than expected, compared to the mid-point of the filing range, while non-switchers raised significantly more proceeds. There are two main reasons for switching. Firms graduate to higher reputation underwriters, and they strategically buy additional and influential analyst coverage from the new lead underwriter. Survey results support these conclusions. (C) 2001 Elsevier Science S.A. All rights reserved.