Multiple lead underwriter IPOs and firm visibility

Jin Q. Jeon; Cheolwoo Lee; Tareque Nasser; M. Tony Via

doi:10.1016/j.jcorpfin.2015.04.007

Multiple lead underwriter IPOs and firm visibility

Jin Q. Jeon, Cheolwoo Lee, Tareque Nasser, M. Tony Via

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

21 Scopus citations

Abstract

One of the primary goals of a firm going public is to create a greater visibility to investors in general. Using a sample of 809 IPOs from 2001-2010, we empirically examine and find that multiple lead underwriters (MLUs) have greater visibility through our five pre- and post-IPO visibility measures. This also holds after accounting for potential endogeneity. Also, MLU-IPOs do not have more underpricing. Our results suggest that issuers with MLUs can increase the firm's familiarity to the investment community and expand their investor base, and this increased firm visibility is not a trade-off for a greater level of underpricing.

Original language	English
Pages (from-to)	128-149
Number of pages	22
Journal	Journal of Corporate Finance
Volume	32
DOIs	https://doi.org/10.1016/j.jcorpfin.2015.04.007
State	Published - 1 Jun 2015

Keywords

Firm visibility
IPOs
Multiple lead underwriters

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10.1016/j.jcorpfin.2015.04.007

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title = "Multiple lead underwriter IPOs and firm visibility",

abstract = "One of the primary goals of a firm going public is to create a greater visibility to investors in general. Using a sample of 809 IPOs from 2001-2010, we empirically examine and find that multiple lead underwriters (MLUs) have greater visibility through our five pre- and post-IPO visibility measures. This also holds after accounting for potential endogeneity. Also, MLU-IPOs do not have more underpricing. Our results suggest that issuers with MLUs can increase the firm's familiarity to the investment community and expand their investor base, and this increased firm visibility is not a trade-off for a greater level of underpricing.",

keywords = "Firm visibility, IPOs, Multiple lead underwriters",

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AU - Jeon, Jin Q.

AU - Lee, Cheolwoo

AU - Nasser, Tareque

AU - Via, M. Tony

PY - 2015/6/1

Y1 - 2015/6/1

N2 - One of the primary goals of a firm going public is to create a greater visibility to investors in general. Using a sample of 809 IPOs from 2001-2010, we empirically examine and find that multiple lead underwriters (MLUs) have greater visibility through our five pre- and post-IPO visibility measures. This also holds after accounting for potential endogeneity. Also, MLU-IPOs do not have more underpricing. Our results suggest that issuers with MLUs can increase the firm's familiarity to the investment community and expand their investor base, and this increased firm visibility is not a trade-off for a greater level of underpricing.

AB - One of the primary goals of a firm going public is to create a greater visibility to investors in general. Using a sample of 809 IPOs from 2001-2010, we empirically examine and find that multiple lead underwriters (MLUs) have greater visibility through our five pre- and post-IPO visibility measures. This also holds after accounting for potential endogeneity. Also, MLU-IPOs do not have more underpricing. Our results suggest that issuers with MLUs can increase the firm's familiarity to the investment community and expand their investor base, and this increased firm visibility is not a trade-off for a greater level of underpricing.

KW - Firm visibility

KW - IPOs

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VL - 32

SP - 128

EP - 149

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

ER -

Multiple lead underwriter IPOs and firm visibility

Abstract

Keywords

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