Underwriter switching in the Japanese corporate bond market

C. R. McKenzie, Sumiko Takaoka

研究成果: Conference contribution

3 被引用数 (Scopus)

抄録

The purpose of this paper is to examine the determinants of firms switching the lead underwriter they use to underwrite their first and second public issues of corporate bonds in Japan between 1994 and 2002. A probit model which has as its dependent variable a 0-1 dummy variable taking the value one if the issuer switches lead underwriters, and zero otherwise, is used to analyze this problem. It is found that the probability of switch of underwriters between the first and second issues is significantly increased if the securities company subsidiary of a bank was the initial underwriter or the reputation of the underwriter of the initial underwriter worsens between the initial and the second issue. Evidence is also presented that suggests underwriters who can increase the degree of overpricing of the initial issue are more likely to be chosen to act as the underwriter of the second issue. Despite the theoretical suggestions that underwriting involves investment in durable firm-specific assets which might lead to initial issuers having an inside edge in being chosen to underwriter the second evidence, there is some weak evidence to suggest that switching of underwriters occurs when second issues are made relatively quickly after the first issue.

本文言語English
ホスト出版物のタイトルMODSIM05 - International Congress on Modelling and Simulation
ホスト出版物のサブタイトルAdvances and Applications for Management and Decision Making, Proceedings
ページ580-586
ページ数7
出版ステータスPublished - 2005 12 1
イベントInternational Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, MODSIM05 - Melbourne, VIC, Australia
継続期間: 2005 12 122005 12 15

出版物シリーズ

名前MODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings

Other

OtherInternational Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, MODSIM05
CountryAustralia
CityMelbourne, VIC
Period05/12/1205/12/15

ASJC Scopus subject areas

  • Information Systems and Management
  • Modelling and Simulation

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