Underwriter Reputation
Proxy: Dummy Variable (Top Tier = 1, Non-Top = 0)
Definition & Description
Underwriter Reputation refers to the credibility of the investment bank assisting the issuer's IPO. High-reputation underwriters are deemed more reliable at pricing shares accurately.
How to Use (Panel Data)
A primary variable in capital market research, especially analyzing IPO underpricing phenomena and book-building success.
Full Explanation Article
Theoretically, issuers using prestigious underwriters have lower information asymmetry, boosting investor confidence.
'Top Tier' status is often determined by syndicated emission volume over a period or institutional prestige.
Related Reference Journals
- [1]Carter, R. B., & Manaster, S. (1990). Initial Public Offerings and Underwriter Reputation.
- [2]Beatty, R. P., & Ritter, J. R. (1986). Investment banking, reputation, and the underpricing of initial public offerings.
Research Ideas
Effect of Underwriter Reputation and Firm Age on IPO Underpricing Levels.
Impact of Top-Tier Underwriter Selection on Pre-IPO Real Earnings Management.
Frequently Asked Questions (FAQ)
What is the difference between this proxy and regular accounting variables?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Where does the data come from to calculate this proxy?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Can this proxy be used for all industry sectors?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.