The role of lending-relationship banks in the underwriting of seasoned equity offerings: Conflict of interest or certification?

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dc.contributor國立臺灣師範大學管理研究所zh_TW
dc.contributor.author周德瑋zh_TW
dc.contributor.authorHsuan-Chi Chenen_US
dc.contributor.authorDe-Wai Chouen_US
dc.contributor.authorChristine W. Laiben_US
dc.contributor.authorYi-Ting Yehen_US
dc.date.accessioned2016-03-22T06:51:40Z
dc.date.available2016-03-22T06:51:40Z
dc.date.issued2014-04-01
dc.description.abstractSections 20 and 32 of the 1933 Glass–Steagall Act address a potential conflict of interest by banning commercial banks from the market for corporate securities underwriting. This restriction was officially rescinded in 1999 by the Gramm–Leach–Bliley Financial Modernization Act. In turn, this development has piqued the interest of scholars and renewed the debate on the role that commercial banks play, as well as the consequences of this role in equity offerings, which may either result in conflict of interest or certification. In this study, we comprehensively examine whether conflict of interest or certification more accurately characterizes the underwriting of seasoned equity offerings (SEOs) by lending-relationship banks. Overall, the results suggest that the presence of lending-relationship banks lowers the gross spreads and underpricing of SEOs. Furthermore, our evidence shows that SEOs led by lending-relationship banks exhibit better long-run performance than other SEOs, which supports the certification hypothesis.en_US
dc.identifierntnulib_tp_I0105_01_004
dc.identifier.issn1062-9408
dc.identifier.urihttp://rportal.lib.ntnu.edu.tw/handle/20.500.12235/77030
dc.languageen_US
dc.relationThe North American Journal of Economics and Finance, 28, 327-346.en_US
dc.subject.otherCertificationen_US
dc.subject.otherConflict of interesten_US
dc.subject.otherSeasoned equity offerinen_US
dc.subject.otherLending-relationshipen_US
dc.titleThe role of lending-relationship banks in the underwriting of seasoned equity offerings: Conflict of interest or certification?en_US

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